Let me explain that better, imagine your rehab is $100k, you would need to do part of the rehab, maybe $10k, and then you can get the funds for those first $10k reimbursed so you can keep progressing with the rehab.Given your experience, I would recommend you start with a moderate or light rehab, mostly cosmetic work so that you can do it yourself and won't get your profit decreased by hiring third parties.

I've got to go take care of some HUD tenants James, sorry I didn't answer the question to your satisfaction, I can imagine that must be frustrating for you to think that I have to do something to the level in which you require in order to be sufficient.

I imagine it will always.

If you feel you can bill separately for water if metered you should have no issue simply adding a flat water fee and I’d imagine the $17,800  could go a long way in a 2 unit building for upgrades that would have a greater impact on revenue. 

I cant imagine a client telling me they will sue me for 20k. 

To think something is easy is to depreciate the value the blood, sweat and tears that people like yourself have poured into this profession.

As you can imagine, we already have an attorney who specializes in real estate and an accountant who is well-versed in rental property accounting best practices (but she admits she doesn't have a lot of experience on the private lending side of the business). 

These folks are imagineers that have a real estate empire in their own heads.Many folks that fill out the "Find a Lender" form just want to talk to someone for educational purposes and are not interested in actually purchasing a property.

If they are not paying (I imagine that is the issue), will you go through the whole eviction process over the next few months versus giving them a few hundred bucks?

Imagine your tenants paying 100% towards the principal owed for 5 years.