Definitely check with small local banks for more flexibility. Also, you could apply for a blanket mortgage if you want to buy more than one rental. We typically put the house(s) on our HELOC, do the fix-up, then apply for a loan. This week, I got a mortgage for $75,000 which covered the cost of 3 houses. Two houses appraised high enough to satisfy the bank, so we minimized our closing costs and have one house "free and clear" out of the deal.