You're safe because I haven't ever planned on speaking there.If you are a lender, suggest you chime in with your area of expertise and knowledge in either hard money or conventional original, as is appropriate for your level of experience and working knowledge.

Conventional home owners loan.

the most popular bank I use 21st Mortgage and require 20% down for their conventional loan.

There is not enough rental inventory so rent is high. 

Inventory is so low I can guarantee that if I specify neighborhood and duplex everyone on here knows which property I'm talking about already anyways.

Obviously, these loans are never going to have the same rate and terms as a fully documented conventional loan.  3-4 points on a small loan really isn't a big fee when you look at the dollars in my opinion but I know it causes a big knee jerk from many investors before they run the math to see 3-4 points isn't a lot of dollars, especially on loans in the $50k-$75k range.   

We have, through this time, worked on our credit and are getting close to being able to obtain conventional financing but are not quite there yet. 

Because of these hurdles, conventional lending isn't an option.

If you are thinking of a hard money lender or a conventional construction loan, then normally the repair money is held in escrow and as Wayne said given out in draws as you complete the work. 

Account Closed if you are seeking a "conforming, conventional" loan (meaning Fannie Mae and Freddie Mac) there are all sorts of rules that have been referenced in this post.