I also wanted to make sure that it could carry itself if it had to.

Engineer for future negotiation opportunities.Deal needs to cash flow.Use "purchase money notes"Consider breaking up into two carry back notes, in case they want to sell or liquidate for cash prior to full term.

Jon New, I'm sorry, I work in the private lender world, and have no knowledge of Fannie or Freddie underwriting.

The trick is to purchase low enough and manage your rehab costs carefully enough that there is a significant profit difference even after paying all your acquisition, carry and selling costs.

Joel provided great info regarding private and hard money lenders new concerns with lending to OO borrowers due to the new laws, so that could be difficult to find.Jason provided some very good advice in working to get your scores up so you could qualify for FHA funding.

I started out originating private 1st mortgages and of course they're all performing, but even those can go non-performing because let's face it bad things happen to good people.

What I would ultimately love to setup would be a seller carry back deal where I put the money I do have as my down payment, get the rest from the seller as a second, and finance the majority of it through a tradition institution.

We have had some experience in investing, but have never used private money or hard money lenders to get into deals.

You can get an appraisal for the finished unit, use a bridge loan and or construction-rehab loan based off the ARV.So, check conventional and non-conventional, private/hard money lenders.Get credit from material suppliers, use thier money!

If you're buyer is very strong, you can also see if he can find a lender that will allow for a seller carry back on a second mortgage.