They raise deposits by offering a low rate and then they loan it out at a higher rate. 

Put most of your 'profits' at first into contingency fund, then budget a percentage of monthly flow to keep that account growing. 

No investor is going to go for thisTransactional funding is the only way to get it done

My assumption was while they are there I can make the improvements and then eventually raise rents.

Likely leaning on funding deals with a HELOC on our primary, and I'm still mulling the best strategy to use HELOC funds - leaning towards BRRRR or buy and flip, to keep the funds freed up.Excited to engage with you all, learn, and contribute once I've got some experiences to share!

If he had no immediate prospect of higher income I'd agree, but he showed me $12k in savings, plenty to cover the gap till his raise, and his mother offered to co-sign. 

I would also appreciate any advice for my situation (low funds, tarnished credit), thanks for your time! 

Plus, @Mike Dymski raises a good point.

Interest applied to the original Loan amount, and not to the remaining balance.2 - 20 year term to payoff.3 - Payments would be made monthly for P & I.4 - Interest over 20 years @ 10%/year = $10k/year for each loan.5 - Principle payoff per year = $5k/yr/loan6 - TOTAL coverage needed = $15k/yr/loan or $30k/yr based on $200k in loans (both loans)This allows you to use the funds as many times as you want, but only have to pay for these funds once. 

If you win the bid, you have to get your paperwork and funds in quickly or they can withdraw the offer.