The utility company doesn't manage your property...they provide paid services until they're not paid anymore. 

It’s on 5 acres and there’s a small pondhouse ADU at the back of the property.

Purchase price: $250,000 Cash invested: $75,000 7 bedroom Padsplit property at 93% occupancy What made you interested in investing in this type of deal?

Buy: Finding the Right PropertyThe first step in the BRRRR method is to purchase a property.

As David indicated, look for properties before you close on the sale of your relinquished property. 

I'm interested in how others structure their ALFs.2) I'm thinking of going with an SBA 504 loan to acquire the property and do the remodeling.

We have 17 properties and the long term we do on ACH, but frankly, ACH set up at our bank is so cumbersome that I stopped using it for the mid-term market.  

He has no legal rights to the property or the deposit because it belongs to the legal occupants of the rental.

Quote from @Jaikevis Reams: In order to put a property under contract I need to provide proof of funds I know that I can get that from a hard money lender but I don’t meet there criteria for a loan approval what should I do? 

One thing to be aware of is the FHA multifamily self-sufficiency calculation which determines if a property can generate enough rental income to cover its mortgage payments.