If you buy in a state where they have a branch you might can get a regular loan through them as a Canadian citizen etc.If there isn't that connection and you want to own on your own then the foreign national program putting 40 to 50% down or paying all cash is the answer on the small balance stuff.You can get great terms with non-bank for 25% down but would need about 750,000 with 500,000 down, 200,000 in reserves, and 50,000 for legal and closing costs.

If you're finding buyers for bank owned properties be careful, interfering with bank operations is a federal issue and they don't like straw man deals.

That would include reserves of $300/mo.

However, it's not the wild west, business transactions are covered under federal laws, the Uniform Commercial Code (UCC), Security Exchange Commission (SEC) are usually the most applicable to real estate investors but there are various federal rules, regulations and laws that may apply. 

I thought 10 was an actual federal guideline.

The approval is mainly based on the deal you are buying but you still have reserve requirements and net worth requirements you must meet.  

The Federal reserve has come out and said no interest rate hikes thru 2015.

After PITI, there isn't much room left to allow for repair and vacancy reserves.  

If I take 40K of the 60K and buy another house and keep 20K in reserve to do the repairs, will I have to pay a tax on the 20K?

Thanks for bringing to my attention the importance of capital reserves for this type of wholesale strategy.