We have done it both ways where we fund purchase and they cover rehab but if the individual is less experienced we do not do it that way, we have them put more money into the deal from the start and fund the draws, reason why is we also had a deal where the person said they would do this and never did anything and property sat and loan matured and it was a pain.Just recognize you will still not get 100% financing for the purchase, so you are putting money in up front. 

Upon further review, SDHC has determined that your application remains ineligible for the following reason(s): Failure to return required forms and documents to determine eligibility   Inaccurate information/Documentation insufficient to determine eligibility  This is the Final Determination that your application for the City of San Diego COVID-19 Housing Stability Assistance Program is not eligible for assistance.

Assuming your property is in Utah (like your profile indicates), here's the state law from a basic internet search:In Utah, a tenant who abandons a rental property without notice is liable for the lesser of the following: The rent remaining on the leaseThe rent plus the difference between the fair rental value and the agreed-upon rentThe cost to restore the property to its original conditionThe landlord can also remove the tenant's belongings and sell them if the tenant doesn't claim them within a reasonable time.

There is a multitude reasons why I like small multi-family properties over SFH.  

They already made their investment using their own reasoning; now it's your turn.Happy Hunting!

Is there a reason that they could not sell their login/password with the sale of the nature retreat that they have built? 

If the separation of funds was for asset protection (in this case there was another reason), it is my belief that an umbrella policy is easier than trying to maintain separation of assets especially when the property has been purchased with individual’s money and financing.  

This reminds me of a police officer  pulling somebody over without reasonable cause and asking to search their vehicle and if the person does not consent, they’re saying you must have something to hide.

  (700+ properties yielding 600K is less than 1K/property before expenses)   Lastly,  many property management companies refuse to manage S8 housing for the above reasons so good luck. 

@Kyle Knudsen, There's a couple reasons why this wont work unfortunately.1.