But you are required to file a Schedule E in the US every year showing the total rents you received, the expenses you had against those  rents and your subsequent profit or loss. 

If for any reason the Court does not make such determination in any eviction lawsuit between the parties, Tenant and Landlord agree that a court in any subsequent action between Tenant and Landlord shall make that determination.

You'll need money for: closing costs, down payment (if any), operating capital to get the construction/rehab started (most HMLs reimburse you in draws for the work completed), along with some liquid reserves on top of that.

But now you could refi, draw out your initial investment and the property would cash flow.

I'd love to hear more about your experiences and what draw you to take that first step in both buying a business and subsequently selling that business if you'd be open to it. 

When you draw from the equity, you are "borrowing" it from the bank and have to pay interest.If you borrow against the equity at 7% interest and then loan it out at 15% interest, you are earning a positive 8%. 

Since all parties are willing and cooperative, still use an attorney to draw up paperwork that covers all contingencies and all parties' interests.You'll be glad you did. 

You shouldn't pay any draw until the work is done.

Hard money typically refers to a company that has it's own underwriting guidelines, rates (9% - 15%), costs, draw process ect.

Somewhere long before 10 years, the higher cost market is likely to have the better cash flow and that will in general increase each subsequent year.