With a block chain, who is going to step up to resolve the issues and reimburse the losing party?

Also keep in mind, this coverage is on an incurred basis, meaning, it's reimbursed.

It sounds like you are just getting a good deal on this overall, so if you did a delayed finance with a rehab escrow, then you could get that initial investment back, plus get reimbursed for the repair.

Get reimbursed at market rate on the refinance and reinvest.

He wanted me to reimburse the inspection cost $500.

I'd rather pay into a CA mortgage and be reimbursed with appreciation.Initial cash flow is required by investors that are poor and poor investors. 

As far as the additionally insured, I'm assuming that raises the subs insurance premiums - would I be expected to reimburse him for that extra cost?

You have completely reimbursed your $20,000 in initial down payment and $10,000 in renovations and now leaves you with money for next down payment and renovations.....

You would pay for the first draw, the lender's inspector would come out and you would be reimbursed and so on until the project is complete.

Pay the bill yourself, then reimburse yourself by charging the tenants based on a formula.