In which the cost of the renovation is included in the mortgage.Has anyone ever used this mortgage and does it still produce the same effect as the normal BRRR strategy where you skip the refinancing stage?

There is no standard.I’ve never been in a flat fee structured deal, ever.

The podcasts have taught me more than getting my license ever did and you can use the form on this website to analyze deals quicklyI’d definitely recommend to start networking with local real estate associations. 

IMO if you chose #1 now you can always choose options #2 or #4 six months(maybe a year) down the road, pull all your 60K back out plus what ever appreciation you have(if any) and move forward. to me in option #3 you said paying interest bothers you and option 1 solves that problem, gives you practice with a new tenant so if they don't pay or u have problems you don't have 2 bills( your old mortgage and your new mortgage) to manage along with the stress(of kicking out your friend and finding a new tenant) just the one mortgage that your fiance already has within his budget(because your 60K didnt' factor into bank financing so you found a home to move to that was within his budget alone(even more safety net) or at least lower mortgage payment and house than if you had 60K to use to buy-down another home. but i digress....Option #1 is less stress , less interest payments,and less of your money with 2 options left over at a later date. like joe said your 60K is safely locked away in the home(minus depreciation) which you can always pull out later on when you are more risk-prove.Still your choice but that my point of view.Good luck!

Your payment would go to them, they would split off the loan payment and send it to the bank and the balance could go to the owner.You can also record your lease on public record which would likely  put you in a chain of notifications if the seller ever tried to sell or in the event of a foreclosure.

I still do buy for my bird dogs so we close and I take title keeping every thing legal then do what ever work we are going to do THEN market the property.. not before..

I would want to see them before you should ever buy. 

Personally I think $100-500 is the most I would ever pay for this type of deal.

Plus you will be leveraging partnerships and other people's experience.Send me a PM should you ever get interested in commercial (5+ units) multifamily apatment investing. 

Antoine best post I have ever read that you have done.. free and clear assets is where real wealth is gained in real estate.