Federal govt should loan the state to do it without any hope of being repaid.  

Other potential issues:I seldom find properties with only $1,000 rehab needed,I budget $125 to $166 for maintenance and capital reserves,I usually have to pay management 10% of rent + one months rent to find new tenants.In other words I would budget higher expenses resulting in even a lower cap rate.Good Luck.Bill

In your case though, I may consider letting the second underwriters know ahead of time just so you can get the appropriate pieces of information together (I would think as long as you have ample reserves to cover both properties and can show a solid future plan for rehab and rental income potential, you should have a better chance of it not being a problem)

I keep track of the reserves to know that the money is there when needed. 

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.