BNI has been a big help in my other business and BNI is heavily saturated with real estate professionals and other related fields (commercial lenders to landscaping to roofers, etc.)  

Based on that ARV, your all-in cost should be no more that $126k (70% Lender's appraisal).

We are struggling to lower our financing costs. I would prefer to work with a commercial bank who can give commercial real estate rates, like between 3.5-5% APR. Instead, because of our portfolio of single family home...

Home up for auction in a great neighborhood, suggestions on how to obtain it with a hard money lender or cash buyers?

There are also specific lenders that are HUD-approved.

I understand the benefits and requirements of a LLC as I am a lender at a commercial bank.

Are you intending to be a partner on this deal, or a lender?

Looking at the Fannie Mae website, I found the following requirements:Cash-out refinance transactions must meet the following requirements: The transaction must be used to pay off existing mortgages by obtaining a new first mortgage secured by the same property or be a new mortgage on a property that does not have a mortgage lien against it.Properties listed for sale in the six months preceding the disbursement date of the new mortgage loan are limited to 70% LTV, CLTV, and HCLTV ratios (or less if mandated by the specific product, occupancy, or property type – for example, 65% for manufactured homes).Note: Properties that were listed for sale must have been taken off the market on or before the disbursement date of the new mortgage loan.The property must have been purchased (or acquired) by the borrower at least six months prior to the disbursement date of the new mortgage loan except for the following: There is no waiting period if the lender documents that the borrower acquired the property through an inheritance or was legally awarded the property (divorce, separation, or dissolution of a domestic partnership).

Just so you know, FHA doesn't approve contractors, your actual lender does and if they've done a few,mother have some already approved contractors.  

Otherwise, i am setting up a meeting with a mortgage lender ASAP that was recommended to ma by another investor to see if she can finance a deal like this for purchase.