It is one of the oldest instruments around and institutional lenders will recognize it as a form of ownership and allow you to refinance out of it.To protect from all the very valid concerns that @Steve Vaughan expressed, definitely run it through an escrow service.The primary risk is that you could be evicted like a tenant instead of foreclosed on like a borrower.  

Spending time on this site was instrumental in helping me to navigate that deal.

We use the internal revenue code to our advantage with financial instruments that help ease the burden of taxes.

The goal, of course, is to get back to the basics: what's the difference between real rate of return versus average rate of return, why saving taxes is super important, what's compounding interest, how can you tell the pros and cons of using different life insurance as a financial instrument for your RE deals, is your real estate activity a trade or business or is it an investment activity, and why it matters, etc... etc....As I'm putting together a webinar for the most requested topic for the next 3 weeks so I'd like to get your input, what would you like to learn more about from a tax CPA, retirement planning specialist? 

@Ryan Thomson, a realtor in Springs was instrumental in helping me find my home here in TX last year. 

2) Title/escrow/recording are closing costs and what it cost to record the Deed of trust, or whatever security instrument is used in the state. 3) all the fees and closing costs should come out of the loan amount, which would mean that whatever you are putting down needs to be enough to cover these costs of the loan doesn't cover them + the purchase price...

Yes, bridge loans with rehab is the instrument that REI use to get into a property at it's lowest point and add value to it to increase its worth. 

Here is the language from the HUD guideline document:"At least one borrower must occupy the property and sign the securityinstrument and the mortgage note in order for the property to be consideredowner-occupied.FHA security instruments require a borrower to establish bona fide occupancyin a home as the borrower’s principal residence within 60 days of signing thesecurity instrument, with continued occupancy for at least one year."

Most of our offerings are debt instruments, which we purchase on a 100% cash basis.  

I view buy-and-hold cash flow as an instrument to stabilize my future income that comes with many ups-and-downs.