How does the buyer ensure that the proceeds are used to pay the first mortgage?

You can prevent this by requiring them to add you as "additional interest" on their policy.

Additionally, we are approved with the Better Business Bureau (BBB).

While I did not work with other agents or lenders for this particular deal, my professional experience ensured a smooth transaction and effective project management.

Even if the rental has a decent cash flow with additional flood insurance, we're still not sure we want to take on that risk as we are out-of-state investors (planning to move back to KY in the future, but not now) and we don't like that it will potentially bring down the perceived value when we try to sell it in the future.The seller has never lived there and has not provided any information on if it has flooded before or not. 

Transparency and professionalism are core to how we operate, and we ensure all properties have clear, insurable titles before closing.

I was drawn to real estate as a way of investing money I have saved up (around $130K with additional funds to leverage out of a 401K if needed), and potentially creating reliable cash flow over the next 10 years. 

Hello,Im working with a lender to refinance into a Fanny Freddy mortgage now that I have stabilized my 36 unit complex.They have asked for a CAPEX schedule, and a T-6, in addition to the rent roll. 

The risk of "piercing the veil" applies more to LLCs when personal and business finances are not properly separated, not necessarily to individual landlords renting a portion of their home.A more practical approach is ensuring you have a solid lease agreement, sufficient liability insurance (including an umbrella policy), and properly reporting rental income and deductions on your tax return (Schedule E).

The proximity to Tinker Air Force Base in 73135 is a significant advantage, as it ensures consistent demand for rentals from military personnel and civilian contractors.