Your taking on the roll of a rehab financier when you do the second scenario.. and by and large that is a fairly risky event for someone who does not have experience in lending money and running rehab contractors... a lot can go wrong.Although some of my clients do the second scenario but they are generally doing it for hedge funds or more institutional buyers.. it can be a royal pain for someone or company to rehab a home for an absentee investors who really has no experience with it.. they can drive the poor rehabber nuts, by bugging the heck out of them.. etc. 

Hey @Michael Thomas  Kevin McBride at Parks Title in Royal Oak is a contact of mine.

I haven't done a construction loan in almost 20 years, but the last time I did one it was a royal PITA.

I know that sounds bad (retribution), but they royally screwed me over and for them to just leave and not pay and get away with it is not something I'm happy with.

I'm avoiding the phone calls from those asking me to "discuss issues with them" as this typically means some sob story about their sad and depressing life on how they screwed up royally more than once and how I, as a landlord, am supposed give them one more chance by turning over to someone who has made many mistakes in their life a property worth many thousands of dollars.  

For the vacancy, repairs and CapEx I am setting aside $700 monthly.The correction on the loan is 5/25 years (Jesse Vega of Royal Bank in South Chgo).Sorry for the confusion.

You are typically going to need to hold a loan for at least 6 months as well or you will be royally screwing your loan officer.

Is anyone familiar with Royal Financial Services out of La Mesa, CA?

Royal Oak, Ferndale & Hazel Park

It was a royal PIA even with all our W2 and assets.