I tried to do my first 2 rehabs simultaneously and I'm going through hell right now.And to answer the OP - the collateral is the property they are lending you money for?  

The tenant is breaking a lease crazy early, and they have legal responsibility to that lease just as a landlord.Back to the OP: the tenant's offer is fair.

Thanks, dollar-sucking power co-op!

Looking back, I probably should of specified in my OP that it will be for a conventional loan.  

@Megan S.Your OP reads:  3.

My suggestion to the OP is to handle it through the proper venues mentioned above.

I don't own a printer or a fax and used to ban printers outright from my office (I have one since I have an old school ops person and it's not worth the fight)I don't want any pieces of tree given to me.

In your OP you make the statement "I would really hate to throw my money away in something I won't never own."  

The no money part will always weed me away from all clients, and the statement that he wants to wrap the rehab fund on the loan is 50/50 that it needs a 203k contractor with the OP not owning the property.

As I stated that is arkansas code, which is why I said whatever the OP uses would need to be legal for his state.