So over the weekend, a foreclosure property came on the market, we check it out Saturday and it's exactly what we've been looking for. List is 109k, needs about 50k in work, we're planning to come in around 90k. ARV when complete is 180-200k. Meets the 1% rule at 90k+50k repairs.
The property has some defects which prevent a traditional mortgage. The big ones are that it's missing a few windows, the ones that are still there are single pane and from the 60's, so needs windows throughout, and the front has some bowing on the foundation (looks like hydrostatic pressure on the front wall - ~15k to fully fix that). Bottom line, about 50k to do everything, and probably 20k of that is required before it's eligible for a traditional mortgage.
I got prequalified for a traditional mortgage, but my credit union doesn't do rehab loans, so I have to go find a rehab loan specialist. Try looking this up on the Internet - feels very scammy. Talked to a couple of loan brokers and they all said they don't deal with rehab loans. Called Wells Fargo but their rehab loan department is doing an overhaul on their loan system until December. Figured I'd come talk to this community about 203k loans and see if you had gotten one from a reputable source. May also pursue the hard money route, get it to a livable condition and then refinance.