I have thus far not claimed any depreciation on this property but don't foresee ever selling it so that's not really an issue.From what I've read, my cost basis is their cost basis which is the lesser of fair market value or cost + improvements.

Hi Account Closed - fair points.  

I will be maintaining Hawaii as my home of record, but I am heading out this summer to live overseas, and really have no intention to come back home more than twice a year.

thanks@Christopher Phillips it’s a smaller hard money portfolio lender so they actually got back to us fairly quickly and seem to have a pretty good grasp on the actual properties.

So my expectation is that went a loan comes due, I'll have the funds to pay it off in full, and if I do not or would rather not - I shouldn't have any problems refinancing with the same or alternate lender.Plus, if the property has appriciation during those 10 years or is a 5-Unit (or more) multi-family that has been maintained and managed well (increasing rents), it should be worth far more than owe'd, further making it easy to refi.

I am fortunate enough to be making fairly good money for a person my age and my goal is to have enough money and knowledge by the time I turn 18 to have a down payment on my first property and have it paid off as soon as possible.

I've been a general contractor for 23 years and have faced my fair share of issues (as every single GC I know does).

First, it has fairly low entry cost for my first property (relatively speaking).

There was also a fair amount of tinkering with the boiler systems to get them filling properly which resulted in a lot of trip charges. 

It is fair to give your contractor the cost for the material up front however, do not pay him the labor costs until he is finished.