Since the LTV on the hard money loan is high , I would personally purchase it using a bank statement loan at 85% LTV (15 percent down) and, as you mentioned, just use your cash for the rehab.

Most often owners have too high of expectations for C/D neighborhoods.

Licensed with permits ~$4,000.Full replacement of all water supply lines and shutoffs from the interior water meter with PEX and an open basement.  1 kitchen 1 bath 1 laundry. 

This isn't just high risk your talking about Zach, your talking about compounded high risk. 

I do need a property that is not very expensive, which is why I have been looking into Clevland due to their low selling prices and high appreciation rates.  

I have not paid retail for RE in many years and would not in my high cost market (average SFH is ~$1m).  

We make sure to do the work to a high degree.

I expect 30% turnover in a given year, but have seen it surge as high as 48%.

I highly recommend managing it remotely if possible.

Provide copies to all parties involved.This project-specific agreement works well for one-time jobs, but if you plan to work with subcontractors regularly, I highly recommend having an attorney draft a Master Services Agreement (MSA) for your business.