The local bank you spoke to is not the only bank.  

Since it is your primary residence, I would go talk with your local bank about the different types of construction loans so you end up with a long term fixed rate financing.

Banks want to get rid of their stuff at the end of the year. 

The bank that I usually finance with dragged its feet on approval through the due diligence period.

Or maybe even why not just use a loan to buy the properties and keep your money in the bank to use for whatever the purpose is? 

The way I look at it, is if I was in an area where I saw more growth and appreciation happening, I would be more inclined to bank on the possible rent increases.

However, there are several lenders, including our bank who provide this type of financing.

The bank will never improve the property beyond winterizing and maybe cutting the grass if there are fines for violating ordinances, but no way they would renovate like that.

What's it worth...to you, the bank, or a potential buyer?

For small stuff, you're dealing almost exclusively with local banks, so you either need to find a local broker who knows who will deals with OOS investors, or you need to get on the phone and start calling the banks directly.