On the plus side the interest rate and points were low-mid range, on the negative side the communication from the loan officer was inconsistent, they caused some delays to closing, and they required me to front rehab costs and reimbursed after 50/100% completion (with a draw and inspection fee).

Some programs will allow you to finance and/or will reimburse you for site prep expenses, which is also nice.Before you pursue the infill/overhaul initiative and base it on new home sales, you should have reasonable assurance that your market can “digest” new homes.  

This is why it is called "cash-out refi": you walk away with cash in your hands.From this $40k, you reimburse your old folks $30k for the rehab (to their utmost surprise) and still have $10k of what some consider "profit."

Fix and Flip loans are a sub category of Bridge loans that allows you to close on your purchase and have your rehab funds available for reimbursement.

With the phones paid off and my wife’s reimbursement from work for her phone bill.

The only out-of-pocket up-front cost should be the cost of an appraisal, and bank account #'s and routing numbers would be required to set up auto-drafting of your payments or draw reimbursements.

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

Once you wholesale it and get reimbursed from your buyer, you're only out the 3% ($30) for whole process, which should only be a very small offset from your potential profit.Hope that helps.

You could also state in the Prom Note Borrower MUST sell the property within 1 Yr (FLIP) and that proceeds will reimburse Lender (you) for any Principal and Interest FIRST and any remaining balance after all costs/fees is split 50/50.  

Green to do your project LOL Frankly it's best for them to buy their own material, and then you reimburse them after you see the receipt.