I only buy if I can borrow the total purchase and rehab costs once the property is renovated.

@Jennifer H.A middle of the road tactic we frequently employ with our student tenants, if they drop the ball at the beginning of our relationship, is to strictly enforce the late fee - even on the first offence - but, once the late fee is paid, we tell the tenant if there are no further issues throughout the remainder of the lease we will either apply the late fee to their rent at renewal or refund it along with their security deposit.This keeps the relationship with those who honestly made a mistake and, for those who make such conduct a habit, it is - to borrow from @Jeff Rabinowitz - a drop in the liquid fund ;-)

I borrowed $18,000 to buy a rental property in Toledo, OH and am renting it for $700 per month.

You may be able to borrow privately on your other properties, in combinations that meet your goals :)

to borrow the money, what the fees if you have to extend that term, etc. 

I'd also want my return to be substantially higher than the rate I was borrowing at.

If you compare FHA with Conv for a SFR, FHA allows for a non occuping borrower, conventional doesn't (this is big).

So, the following month when the borrower defaults, that is a whole new case not covered by the dismissal with prejudice.

Selling Guide Fannie Mae Single Family Part B, Origination Through Closing Subpart 3, Underwriting Borrowers Chapter 5, Credit Assessment, Traditional Credit History pages 463, 465-466 https://www.fanniemae.com/content/guide/sel011713.pdfThere are what they call "lender overlays" which banks and lenders will tighten up the Fannie/Freddie guidelines to improve their overall performance.

I've seen it far too often throughout the financial crisis, reviewing loans/borrowers on bank's books..