We have done it both ways where we fund purchase and they cover rehab but if the individual is less experienced we do not do it that way, we have them put more money into the deal from the start and fund the draws, reason why is we also had a deal where the person said they would do this and never did anything and property sat and loan matured and it was a pain.Just recognize you will still not get 100% financing for the purchase, so you are putting money in up front. 

I manage a few smaller complexes and they are all on individual price schemes though they are usually within a few dollars of each other. 

Some other other options to consider that may be easier, would be these: 1) Take your $840k and have a money manager at Vanguard, Fidelity or Schwab invest it in individual bonds at a 4-5% return. 

We often need to ask the right questions to help determine the best route for each individual.

It depends on where you want to live, income, personality, and other factors.You could buy a large home and rent out the individual rooms to cover expenses, but this comes with problems.

This is some of the most desirable and difficult to develop real estate in the country, owned and operated by many of the most powerful and affluent individuals and corporations on earth.

New landlord question- if I have an individual who wants to rent my place for their parent - who do I have fill out the application?  

Hey @Zach Howard,Happy to connect with you and put you in touch with some solid individuals in Augusta, GA.

@Bob Asad I like the individual sub account method escrow account, but there are multiple different ways to hold security deposits and multiple laws in different states.

When we built up the triplex, we set it up so that each of the 11 rooms can be rented out individually (all BR, except 2, have their own bathroom behind an electronically locked door).