Typically, the initial upfront for the rehab is either cash or a high interest loan (hard money or private). 

Our initial plan is to house hack a quadplex somewhere in Orange County.

@Sean Gallagher - My initial reaction is that if you're thinking about a property manager to help oversee the daily operations you're probably at a point where you need to get one.

In my initial contact the first deal representative she  mentioned it’s because I am not looking off market.

By spreading the investment horizon across decades, this initiative builds resilience into its model.

We initially wanted to get a $190k house to fix&flip, which could've been a nightmare and was from HUDhomes...

1) We make sure backside funds are confirmed at title before we initiate frontside wire.2) Our agreement that we get the wholesaler to sign essentially would allow us to secure a loan against the property if for whatever reason there was an issue (as never happened).3) We generally insist that both the A-B and the B-C contract are at the same title company.

Remember there are 4 ways you are getting ahead by owning a small multifamily property (houeshacking initially).1.  

This implies renting is initially cheaper than buying and at high LTV, rentals are initially cash flow negative.  

Thanks to this equity growth, we were able to recover much of our initial cashflow loss.