My initial thoughts would be to secure a construction loan for the total rehab amount based on the entire property’s ARV.

There are a few types of people who will buy your end of line flips….1) Those that will only buy truly safe … battle born… “equity the day I buy”.. opportunities And/or2) those that were trained to see real estate investing as a much more risky “ investment”… in other words  “ a buy that “SHOULD” have value after appreciation”With Buyer group #1… if you provide truly investor grade deals that haven’t been stripped of most of the equity before you try to flip, you will build a following of investor grade buyers that WILL pay cash and CAN close “ as soon as the title search is done”… This will net smaller nets for you initially , but you will own a REAL Buyers list… that WILL have the experience… to REALLY CLOSE ASAP.And that will make your machine run MUCH more smoothly.Or2) you can initially max out your net on a few deals as you scape out most of the equity for yourself… but you will only be working with non experienced buyers.. who will buy ….one… realize that they are in WAY too deep… have no B plan.. and they will be FAR less likely to buy again… AND they may never even make it to your first closing .So.. your choice… cultivate a crop of GREAT slam dunk , low work load real buyer investors…. where all you need to do is find the property , mark it up a LITTLE ..and we do all of the rest of the work…Or sew a crop of weeds…I do spend a little bit of my time asking wholesalers to take me off of their lists.I would love to buy from you.I don’t want to spend my time doing the initial marketing.I am willing to pay for your valueBut I don’t buy properties that don’t have TWO exit strategies1) enough equity AT CLOSING so that, at the very least I could sell it TODAY without taking a loss…..AND2) after my expertise …. 

Please let me know: 1. your opinion of my proposed schedule, 2. your experience with HML and SOW, and 3. most importantly the changes you would make to my schedule:SOW: Initial down payment of $1000 or 10% (whichever is lower)Demo, order and pay for materials needed for items to be completed before the first drawDraw 1: Foundation, Ext framing, mold, pest, trees, septicDraw 2: Roof, waterproofing, int framing, siding/brick repair, ext HVACDraw 3: gutters, concrete, plumbing, subfloor, ext electrical, ext trim, sheetrock, insulation, int HVAC, windows (I was told these take a while to get delivered but my thought is is framing, ext repair/trim are complete these would be a good time for them?)

Opting for a year-to-year increase allows flexibility but might not align with their initial desire for long-term stability.

Check the sex offenders list, require two years of consent employment, don’t pull credit scores, do run a drivers records check, do run a state background check through your state police and do a local county courts check, list each category on your application and have them initial and sign along with a witness of a notary. 9.

It needs little repair/work as the owner is a contractor and his daughter initially lived in the home, so he's kept it up-to-date.

A lot of times, they have more wiggle room in their budget than they initially say!

@Veeru Rao - First let me congratulate you on taking action and getting the ball rolling with your initial properties! 

Love to join you guys when you send out the invites.Love the initiative.  

After much, MUCH MUCH research within a 24 hour span.. we decided to NOT pay the winning bid at the county and be out our initial deposit.