Also if you decide to convert the property to a long-term rental the improvements may be added to your capital basis & depreciated over time.Track Expenses by Account - Helpful for reconciling bank accounts, credit card accounts & expense reimbursements#2 Liabilities / Outstanding Loan BalancesIf you are using outside funding, you will also want to keep track of your outstanding loan balances that you owe for each property.You can do all of this in an Excel spreadsheet by just creating columns for Category, Vendor, & Accounts.

The appraiser will have to be educated on the improvements done to the property or the reason why it was able to be purchase at the steep discount that it was purchased at and how you've got enough equity to refinance 100% of the outstanding loan on this property (hopefully you're at 70-75% of ARV or after repair value or lower).The strategy is great and all only if its artfully pulled off to minimize the risk on that exit appraisal. 

However, they are likely one of the safer plays with enough education and experience since they are typically purchased at major discounts relative to the outstanding balance or property balance. 

Unused contingency funds, unless they were received directly from the borrower, must be used to reduce the outstanding balance of the renovation mortgage after all of the renovation work has been completed and the certification of completion has been obtained.The loan is not re-amortized.Draw Schedule: HomeStyle program has a maximum 4 draw process.The initial draw can be up to 25% of the total project and can be for materials for the project.The final draw will be at least 10% of the total project as retainage and funds will be released upon receipt and approval of final inspection, Certificate of Completion from Appraiser, signed All Bills Paid Affidavits and Lien Waivers.Additional Draw Information: Signed Draw Request by borrower and contractorSigned All Bills Paid Affidavitreview and approve the draw request and will release funds for disbursementA check will be issued in the name of the borrower and contractor and delivered to borrower via USPSAn inspection of work to date will be performed at 50% completeFinal Draw Information: Signed Draw RequestFinal inspection/Completion Certificate will be required for release of final fundsA Title Update showing property free from lien or encumbranceGeneral Contractor’s Lien Waiver AffidavitAffidavit of Completion will review and approve the draw request and will release a check in the name of the borrower and contractor.Change Orders and Cost Overruns: Changes to the initial plan are not permitted unless prior approval.

By doing this, my loan's outstanding principle value is always accurate.

Outstanding house.

If it doesn’t your mortgage broker can defiantly tell you.Google says...Lenders can call the loan — demanding immediate, full payment of the outstanding mortgage balance.

You can find most if not all of these outstanding materials thru Bigger Pockets.

They also left with a water bill outstanding an unpaid.

I'd also recommend you work with a title company to make sure there are no outstanding liens on title or other problems you may inherit.