There are programs available that will allow up to 85% loan to value on an investment purchase. 

And purchasing in a high end college town eliminates any "deals".

I used to think that most investors purchasing mortgage notes were clueless as to the mechanics of how it worked.  

In the industry this is most commonly known as a "Fix and Flip" Loan.We are correspondents with dozens of lenders who offer this type of loan.Most commonly, the loan will cap out at 75% of the ARV (But Investors do need cash, this is not a 100% financed transaction)75% has to include the purchase price and the rahab amount requested.The terms can vary greatly.The two most important areas that will impact the terms the most is 1.

The judge won't care what the agreement was, you broke the law and now the judge is going to award the tenant 3 times the monthly rent to the tenant and order you to give back that money.You need to tell any applicant that offers this that they must complete your application and go through all back ground checks.

Do you have a written agreement?

Notes:*This value is based on rental comps in the area as well as the current lease agreement for one tenant**Prior years' operating expenses were estimated based on current owner's actual operating expenses as provided by the listing agent.

The custom builders in the area are very competitive and are offering pretty inexpensive builds vs comps.If the lot was purchased recently for 20K and the turn-key cost to build is $200K, after I close on the house (bank said appraised value would be 220K), would a new buyer have problems with it getting appraised over $220K even with other comps selling for 300K+?

What sales price range are you targeting on this purchase? 

My plan is to only purchase 1-2 properties per year, though, which is probably the main reason why this approach works for me.If you don't trust your realtor, I'd say maybe you should maybe find one that is a better fit?