We opted for a crowdnote as our investment vehicle.

This is important because if you want to look in several states but are working with someone that isn't licensed in every state you would want to plan ahead of time to have several agents that could give you the coverage needed.

Should I let the bank know that is where I plan on obtaining funds for my down payment or should I go ahead and pull out the amount and put in my bank account before applying for financing ?

Hello Courtney,Your options are private money(meaning family, friends, etc), HML, borrowing against a 401K or other retirement vehicle or can you take a HELOC out on your primary home?

Best thing you can do as a customer is pay as the work gets done and don't let the GC get too ahead of you.

It's completely feasible to achieve enormous levels of success investing out of state - but keep in mind that when you get involved in a deal that is not local you're losing some control, and your visibility & oversight of the deal is dramatically diminished.Unless you're buying a turn key or getting into a PPM or some other commercial investment vehicle with a group that is managed and regulated, you may want to consider keeping it local until you've gained the experience and knowledge, and developed the out of state relationships necessary to be successful from a distance. 

I would hate to risk such a big move (selling our one rental) and doing this wrong by putting our efforts toward the wrong vehicle. 

Many lenders also will require 25% down on  2-4 unit owner occupied properties if you currently owner occupy a single family home.Just a heads up.

If any questions come up in the lending process you can get ahead of that with your, now solid, explanation.

While I realize this is the only skin in the game required in exchange for them financing 100% property and repair.My fear is that I’m not comfortable with not knowing ahead of time If They will qualify my deal-or if the $3k will be lost is I don’t get qualified To move forward.