I imagine that when you had a full time day job you sub'd out most if not all the hands on carpentry work.

Any monies withheld are not meant to slap the hand of the contractor but cover financial losses arising from one partner failing to do their part.

Generally that comes with hands on experience, but it could come with your cousin if he going to be generous with his time and guidance.

But do you have any ideas why he would want me to hand over ownership before it's refinanced?

You may also take on other liabilities in doing this, not only claims of missing jewels, but taking property that has much more value than the amounts owed, as with any lien, you're only entitled to amounts owed from the damages, not just any amount you can get your hands on.

I'm looking to do whatever deals I can get my hands on.

I agree with Will 100%regardless of you self managing this investment I'd tack on the expense of property managers for this type of investment. 5-6% on income, or whatever the rate is near your area.When you go to re-sell (if ever) chances are a new investor will not be so hands on and will look at the actual expenses/income and evaluate bringing your cap rate much lower, which will bring your overall value of this property much lower.

I'd never pay that here in Denver, and I see apartments trade hands below that.

I'd like to get my credit score up over 720 before hand to drop the rates a little bit but we'll see what happens.

On the other hand, if you do live there with him and fair market rent is really $500 your actually giving him 0% interest....