I bought my very first rehab house with a renovation loan from the bank. (biggerpockets.com)
Private investors can also borrow money from the city to rehab houses as affordable rental properties. (realtormag.realtor.org)
It is similar to Vacation House for free, but they don't rehab a house they find turn key properties, some are already existing VRBO's that someone is selling. (biggerpockets.com)