Any advice using a FHA 203(k) loan or conventional rehab loan?

[Ariel Drilon]

I'm currently speaking with several lenders and want to pursue a primary residence using a purchase and rehab loan. I read about it in Brandon's book, but after speaking with lenders I still have some questions. I'm struggling to grasp the timing of everything. Thanks in advance for any advice and even success/lessons learned stories:

1) When do you start making payments on the loan? Is it immediately after you close on the property or does the rehab need to be done first and then the loan closes?

2) Obviously trying to avoid making 2 mortgage/rent payments, but are you actually living in the property while the rehab is being done? This relates to the first question. The ideal scenario, I'm hoping, is that when you close on a property the rehab will begin and once the rehab is done within the appropriate timeframe, the loan will then close and your first payment would be due. You would move into the property when everything is done. Not sure though.

3) The lender told me that I would have to manage the contractors/rehab by myself and that they only issue the check. This seems intimidating. Anyone have experience with this?