Figure out exactly what you want to focus on for the year and don't get distracted by the various ways you can make money in real estate.

My worry is that it is almost end of the month and he still didnt do anything at all on the project.What are my options if he comes on May 1st and tells that he has no money or that he will pay in installments?

Also since the first purchase would be FHA (3.5%), I would still have money saved for the down payment on the next, probably in the range of around 50k, also could get a partner for the second, though since this will be my first two purchases, I'm leary about adding a partner already into the mix. 

Define unlimited money. $5M in Charleston is different than Los Angeles.

Hard Money Lending/Private Money through Spring Garden Lending How did you add value to the deal?

Most are free if you don't owe anything, but even a $100 annual fee here or there is worth it to know you have *access* to the money if you need it, later on.

Are you an investor looking for a top-tier hard money lender to build a relationship with?

In most circumstances, if hard money was used to purchase the property, there will be a due on sale clause as others have mentioned that would be triggered. 

You will then have a few options with that rent money....you can put it into principal or you can start saving it to purchase yet another property.

Losing a little money or breaking even on a first investment is generally actually not a bad outcome if you can get a lot of on-the-ground learning experiences and mistakes out of the way early