The alternative option is to request for a full review, which can take several months, and is not guaranteed to be successfully approved.

At 6% it's $9,000/m.My guess is she bought the property 12 years ago, owner carry, for $400k to $500kFrom her side, it's a guaranteed occupancy in a prime area, with a simple, zero maintenance building (Brick, new roof,etc), so she really does not have a reason to sell. 

My alternative option is to request for a full review, which can take several months, and is not guaranteed to be successfully approved.

Interest rates are definitely going to be higher than conventional (although pre-COVID-19 they were competitive and looks like it's trending that way again), but as long as the cash-flow is really strong, and you can have someone with solid credit guarantee the loan, you should be able to get a 30-yr fixed on a 1-4 unit property at around 70% LTV for cash-out, 75% LTV for purchase or rate-term (although again, we're seeing strong pressure to move these percentages up about 5%, but this is where most are currently).I can send you a PM, would be happy to answer any questions you have.

I'd further customize the response highlighting some of those repair areas as having added risk once you get behind walls, etc.All retail buyers will want inspections and I'd explain to the seller that properties like this can tend to sit with greater days on market and if a quick sale is appealing, you can guarantee it.

I would recommend lending to an entity that's been around for a long time, get a Personal Guarantee from the Principals of the entity (if more than 1), check out the local County's Recorder office for Mortgages and Release that have been recorded over the years to check for experience, HUDs of purchase and sale of the same asset to check out experience, maybe even reach out to past lenders they've used (listed on HUD), ask for references that match those HUDs, and you're on your way!

I'm planning on contacting my real estate attorney on Monday to get more advice as well. i think the biggest downfall will be having money tied up for a year without the guarantee of getting the property.

It's no guarantee but it's a good place to start.

As Wayne said, it may take a long time and there is no guarantee that the bank will agree after waiting.

As a veteran, I had planned on using the VA home loan guarantee to enter the world of real estate one property at a time, with a new purchase every 6 months or so.