Great questions, and I will be totally up front in stating how new I am to all of this.

Probably will be Toni but you are in good hands with both.

Most hard money lenders require 10-20% down payment of the purchase price or total project cost.Holding Costs During Rehab: Yes, you'll need to cover carrying costs, including hard money interest, utilities, taxes, and insurance.

, 2) it manages the properties directly so there are many hands in the cookie jar, and 3) how/when/impact if "they" decide to liquidate properties and what would be the exact impact to me? 

One thing he used to do was hand-deliver the application to them so he could see how they kept their house. 

Totally agree with you and it looks like I need to get a business license to do the intermediate leasing occupancy (ILO) in SF.

However, they approach financial health from different angles.The 50% Rule is a quick estimate that suggests operating expenses (excluding mortgage principal and interest) will roughly equal 50% of the property's gross income.The DSCR is a more precise calculation (Net Operating Income / Total Debt Service) that determines if a property generates enough income to cover its debt obligations.Deal example:- Class C middle class neighborhood- 4bd / 2ba single family house- ARV: 190k- Purchase: 105k- Rehab: 35k- Market rent: $1,400-1,525- Section 8: $1,475- Property manager: 10%- Taxes: 125 month- Insurance $1250 yr- HOA: $55 month- purchased and rehabbed with all cash.

I totally understand people hesitation in putting their full names down. 

Almost an impossible way to “get started” as you’re going to need full purchase price in cash on hand or a HML willing to instantly fund you. 

They must be totally desperate!