Your biggest issue is that $50k may not let you get a nice house and have any reserves.

With this in mind, if you intend to leverage short-term debt (hard money), it's even more vital that your underwriting is thorough and that you have the correct systems in place to tackle potential issues.

Now I can see some builders having an issue with comps.. but other than that its crazy to take these funds as income and then pay tax and plow it right back in.. 

They’re making sure they are aware of anything bad happening or issues they need to be aware of.

Invoices go into the CC account the same as they would in the AP account and are attributed to the vendor who issues them.  

Should I be concerned the bank may have issues with this? 

Is there any state statute dealing with this issue?

Things can and will go bad, but once there is enough monthly cash flow generated it will be extremely difficult for that one big issue to put us away or even 2-3 big issues all at once. 

But the biggest issue is not being signed into both this account and my own at the same time.

Need some more statements from them but liquidity shouldn’t be an issue either.