Do you have a reliable contractor that you have done business with before?

Provide the payment instructions5.

They would like me to finance the $70,000.00 into a conventional mortgage and also have them as a lien holder with a promissory note of $100,000.00 with $300.00 monthly payments with 0% interest until maturity.

When I have clients contemplating the two, I look at holding plan (you already did this, so great there) and the difference in payment.

I bought for $10,000 down and pay $1,000 a month to the seller with a balloon payment of balance by end of year one.

My wife and I decided that we would rent out the house but because we have received a grant for the down payment and closing costs from the city of Baltimore, we are wondering if it’s okay to rent out the property without any issues or they would check to see if we live at the property or we did a mortgage fraud by renting out the property for not living it for 7-12 months.

You can pay the mortgage with an auto payment from the LLC bank account BUT HOWEVER the 1098 will come in your personal name, and the property taxes in your name.

I don't remember when was the last time that I have to go on IRS and/or my local taxation website to file payments personally. 

You have guaranteed payments coming through and you can allocate your rehab dollars and buying another property on top of this one.

This is the price you pay for having the low initial down payment unfortunately. :(