@David Beckley Does this person have a long track record with this bank and/or do they have a ton of money in reserves?

If I were in a position where I had significantly more units/cashflow or huge cash reserves, I would re-consider, but during the "growth" phase of my rental business I don't want to take the risk of having to pay those kind of expenses out of pocket.  

If I had larger cash reserves and/or more properties, I would consider cash value.

But I love this as a career so it was a natural step. 

Credit and reserve requirements are reasonable and as long as rents cover the monthly payment they have options. 

I’m hoping that the forced and natural appreciation will bring me up to/around 80% LTV, with no money out of pocket (I’m financing all renovations through the rental income).Best of luck!

There's a natural fear, "If I find a seller, but I can't find a buyer, what do I do?" 

(Condo value $80K, 3.5% of $80K)That would be $185K of reserved money.Then minor repairs... hmmm, when people say "just" cosmetics, often they don't really know how pricy that can be too.

I calculate cash reserves when I purchase the property and set that aside.

There is also the concern of cash reserves.