If he is only having hard money for a few months the delta between 7 and 10-12% is not that much.There are many other reasons, but those two I see are the most common

Partner Driven financed the Grapevine Dr deal by utilizing internal capital, ensuring a swift and seamless transaction.

It allows you to learn from the mistakes of others so you can shortcut the process and avoid common mistakes investors make.

Demand for Midland will always be there, not sure on STR rules but if you're traveling regularly then STR it and get the tax benefits/utility from it but make sure you're not violating the occupancy stays.

If they had required landlord history to use rental income above just offsetting the payment and rental income resulted in qualifying dti I guess, but that would not be a common scenario when using long term rental income.

Many lenders, including my group, offer a DSCR product to refinance on the back end as well.Before taking out a loan for a BRRRR project be sure to calculate all carrying costs (taxes, insurance, utilities, HOA, loan interest, etc.) to ensure (i) you have sufficient cash to cover monthly payments for at least the duration of the project and (ii) your estimated rent after repairs is at least 1.10x PITI (monthly refinance loan payment principal and interest, taxes and insurance).We have a proprietary BRRRR cash flow calculator tool that we share with our clients to help reliably assess costs and returns for these types of projects.

@Allison Keib, be "cautious" of new construction (ground up) for new homes or modulars for new investors.Ask your realtor if she had ever built ground up modular homes from beginning to the end before (entitlement, underground utilities, crane in units, rough hook up, final touch up, etc.)? 

It's pretty common to obtain 100% financing for both the purchase and rehab funds after you've been doing this for a while.Borrowing, of course, is a two-edged sword because your interest payments, especially for a hard money loan, can eat 1/4 to 1/3 of your profit.

What would be some common pitfalls in either transaction?

Have you encountered any particularly common or unexpected challenges in your research so far?