It really depends on what your ultimate goals are in the short and long term. 

Planning to use the rental as a short term rental or traveling nurses. 

A mechanics lien also has a very short life cycle in most instances as many are filed but never make it to finish line.Title insurance is the best way to avoid title theft which you may hear about on the news but it is not this rampant thing going around.

It's easy to get caught short on cash mid-project.

We are in the Seattle market, so reality is that demand so significantly outweighs supply that on new construction you aren't really at risk of not selling, its more for at what price per sq ft it will end up selling for.But one mechanism build in is that there is a $100k buffer where he will hold at least $50k of his build fee until after house is sold.

Q3) If it's a loan from our parents that we are paying off, who holds the title to the home?

Conversely, if a deal falls short of this threshold, it's prudent to pass on it and wait for opportunities that better align with your investment criteria.

If you are offering some on site services you will need to be located physically where you are managing, as we are. 

HMLs are a crucial short-term solution for properties needing significant repairs, and for investors not wanting all the red tape that comes with traditional products.

Experience with Distressed Properties: While it's true that many clients of real estate agents are looking to sell for a profit in non-distressed situations, investor-friendly agents specialize in or are at least familiar with foreclosures, short sales, and REOs (bank-owned properties).