Originally Posted by After Shock Media

They may seem complex at first. Just keep in mind that improvements must be made and certain types are required (access is a fantastic one since it goes with upcoming demand). Same improvements can be combined with an EEM loan (link.)
You will typically pay a slightly higher interest rate and ARMS are only available for owner occupied. However you need a lot less down. Have the quotes and paperwork done by pro's on this to save lots of time. Keep in mind you can not ask for more repair money after the initial so do get solid quotes. Also note you can mortgage in your expected vacancy mortgage while your doing the repairs/improvements.

In essence if someone has some balls and the monthly cash flow to keep them afloat. They really can extend themselves pretty hard into rental units for very little cash.