Or will I get the deed but just not be able to resell due the them having an interest in the deed as well?

The easiest way to think of the draws is like a reimbursement where after you complete work on the property, the lender sends out an inspector to confirm that work has been completed then gives you funds according to what has been done.You should be using a lender for the purchase as well since purchase and rehabs offer the highest % of purchase price.

It is regional, but I find some of the newer homes where I am have more open living areas, but the bedrooms are smaller as are some of the lot sizes.To get a new mortgage, your rates are likely going to go up, but if the new home was well built, you shouldn't have to worry about things like new windows or a new roof for a while.

So find out actual details about requirements, loan limits, rates and fees first from a lender who actually offers it because it’s not worth it if you can’t find a property that still cash flows well after you take that loan out.

Instead of taking bits and pieces of everyone's information which will vary greatly by municipality, consult with a local contractor who specializes in basement conversions.

Note that  if this goes well, I would want to continue making deals there.2.

Good information David.   

I highly recommend joining local investment groups (Facebook is great for that) and attending local meetups, such as the ones hosted by @David RamirezI'd be happy to connect with you as well!

I have a client that just started in Phoenix and doing well.

I'm a property manager in Tacoma with you and invest as well.