So Don, my understanding is that an Option is a one way agreement in which the buyer has full control (to purchase) and is usually initiated to "buy time" - such as in the case of a feasibility study for commercial property.

The description says that the basement has areas which need mortar repairs, a leak in the chimney, and signs of moisture in the first floor bedroom, but you've allocated $0 for an initial repair investment. 

I actually now have $111,413.60 (18k CF + $93.4k Sale) after 5 years, from my initial $50k investment. 

Purchase price: $298,000 Cash invested: $29,000 Initially bought as a primary residence.

Anyhow, my question would be how would the bank know what the initial purchase was for?

Yup, that was my initial plan for this one.

Mis-interpreted the posters initial question.

Goofy initiatives like this with more rent controls are popping up all over the country. 

I initially started with a turn key property in Fayetteville Arkansas a year and a half ago.No I’m ready to take on another challenge by doing the BRRRR method.

Interested in hearing from the people that have experience with lending funds (their own personal money) to other for real estate investing; whether it's for repairs on a property, initial capital to fund a purchase, etc.I am not particularly sure that i want to be a landlord and deal with tenants constantly.