What @Steve Vaughan and his wife did is perfectly normal and actually streamlines things a little to shave some costs of extra work.

Jean,The normal policy for that situation is a Renovation Builders Risk policy. 

Primer paint is normally white, but you can have your paint guys actually mix it to a closer shade to the color you want, to really make that cocoa brown or whatever really pop and show that true color well!

Brad in Wake Forest, NC

This is researching for a market, then analyze turnkey property deals available on like zillow, redfin, realtor, etc. and just purchase like any normal home purchase and afterwards hire a property manager to advertise, screen, then manage the property going forward?

I can operate it as a normal shower with both hot & cold water but not with all the fancy options.

In your case, the damages sound like normal wear and tear, and it would, in my opinion, be unethical to withhold the money.

@Xavier KarikitanPartnering up with others just because they are your friends is not the best reason to partner with others.There are normally 3 traits required to make a real estate fund successful - Time, Capital, Experience.What trait do you have and what traits to your friends have?

If you want to hold you could take out less of a refi loan normally you get a better interest rate also.

Once the sweat-equity pays off their half, they split cash-flow, profits, 50/50 like normal.