The truth is that finding a decent contractor is next to impossible anyways so trying to get them to be ok with some highly structured draw schedule... and then having a seller accept an offer with a weird rehab loan... seemed good in theory but I realized it is so easier to just go traditional. 

my current terms are 10%, 1 point, 100 % construction cost, no broker fee, no interest until i do draws, fast closing 2wks, I had to owe the land outright, believe it or not this is a Hard Money lender. 

My draws to the contractor were not specific enough and jobs didn't get done as fast as I think they would have if those draws were very specific.

In addition with some loans such as Fannie Mae they are now allowed to move the property from their personal name into the name of a LLC without violating the due on sale.Section D1-4.1, Information Relating to Transfers of Ownership Applicable to All Mortgage LoansD1-4.1-01, Determining Whether a Transfer of Ownership Is Permitted (11/12/2014)[...]D1-4.1-02, Allowable Exemptions Due to the Type of TransferA transfer of the property [...] to [...] a limited liability company (LLC), provided that: the mortgage loan was purchased or scuritized by Fannie Mae on or after June 1, 2016, and the LLC is controlled by the original borrower or the original borrower owns a majority interest in the LLC, and if the transfer results in a permitted change of occupancy type to an investment property, such change does not violate the security instrument (for example, the 12 month occupancy requirement for a principal residence).Note: The servicer must notify the borrower that a property transferred to an LLC must be transferred back to a natural person prior to any subsequent refinance application in order to meet Fannie Mae’s Selling Guide underwriting requirements.All of the information that I post here on BP is to be considered my opinion and not taken as legal advice as I am not their personal attorney. 

I do think the tax rate though for rentals may be a little higher than you think  North Charleston is an up and comer we have built about 15 18 homes there just off of Park Circle its got a great walk score and it has a magnet school and that is the big draw.. plus not so far out.. 

I draw kitchens, baths, and all the spaces in between, and have the privilege of seeing the final results and knowing what works and doesn't work.  

That is where I’d draw the line in the sand.  

If you are going to rent out anyway offer them new lease what is reason for evicting, dont take PM word on everything checks laws in state, if they draw out or play hard ball you could lose more than the fees owed now.

A purchase agreement, either your state promulgated contract or a contract that you had an attorney draw up for you.

Ask how their draw process works as most are a reimbursement and you'll have to upfront the money.