You end up having to sell to someone with higher down payments, better credit, better operating plan, and 100% investors who never want to pay top prices.  

U may want to talk to your account rep and get a clarification of this. whole notes it appears they do assign 100% interest to the investor .. and in my mind that is the safest way to do these. 

As a result, no MiniStays account for me. 

As soon as you get the leases signed and proof of security deposit and first months rent deposited into your account your can use it.The question should be, do I even need to get the units leased out to qualify ?

Seller financed (probably) won't be reported to the credit bureaus and so won't impact your credit score at all.

the note is converted or exchanged for credits?  

I operate 14 properties from the same checking account.

I don't like the returns but we use regular savings accounts. 

In other words, not resold to the government so the bank had more flexibility on the condition.I look at the original commitment letter and it states "xxx amount will be advanced at closing for the purchase of an investment property, and the remaining balance of the loan to be placed into an escrow account to be disbursed as improvements are made".No points, and only one closing, so I don't have to deal with a short term HML that I have to refinance in under a year.Hope that helps!

I have some of the required funds in a HYSA, but will most likely need to draw from another account and I'm curious which method is the most efficient in terms of taxes/capital gains, penalties, loan repayments, etc.Based on my previous transactions in the market, I estimate ~$45k cash to close: $20k for the down payment, $15k for closing costs and prepaids, and $10k of starting reserves.