You need to nail it down for your specific area.

So I bought nails, three 8′ board on board fences, and rented a home depot truck for $200.

We have to get this nailed down by the close of escrow obviously.2) Our HM lender terms are: $375k initial loan + $100k construction holdback = $475k Total Loan, 10%, 2.5 Pts, 6 mth.

Remember that every property is different, (example owner pays water, sewer, garbage, landscaping, heating vs. tenant pays all those expenses; this can make a huge difference) so your best bet is to nail down as close as possible each line item in the expense column. 

If you prefer we can chat and nail something down. 

Hey @Ryan SladeI think @Dan Heuschele nailed it on the head.

Exactly the strategy that @Zack P. is advocating for.People always focus on replicating the hyper-aggressive acquisition strategies and always forget about making sure their portfolios are also built for wealth preservation.

Miguel,Nathan nailed it. 

So if the 2nd lien holder redeems, it's good for you because you have preserved your current equity position (not increased the debt via advance), removed the lien from the property, and the taxes have been paid.  

I would definetely hold the note for few years if the math (that I am going to nail down!