Since your putting this in an LLC, you can't get a conforming mortgage, you will have to use a commercial loan.If you want to go the conforming mortgage route, you can't loan the money (like a hard money loan) to yourself, but a brother, cousin, etc, that doesn't live with you can (I've done it before),, you have the title company draw up a loan with the closing paperwork.When you finish with the rehab you go to 'refinance' your mortgage with a traditional lender, not a  problem (or at least I haven't had one).My mother was getting 1% on savings, and I was paying 14% interest to a hard money lender, which made no sense, so we started doing it this way, she got 6% interest, and I felt like I was helping her out,,everyone won.Don't have a spouse loan you the money, keep it someone that doesn't live with you (I know someone that did that and it caused some issues)

When they do the initial inspection they may look more than I know, I was not there for that, but as far as the inspections for draws, they only look at what they are paying for.  

Should I draw up some type of doc for them to sign agreeing to do the deal together so I don’t get burned or is my mindset on this completely wrong?

(One time a child started drawing pictures on the kitchen floor with a marker pen during the showing and the parent did nothing!  

To protect them they can let the money out in draws as projects are completed.

How do they handle draws?  

That being said, if the windows are at the end of life and you are going to have to replace them in the next year or so, it is a valid consideration.  

What do you mean the bank won't fund draws until the work is completed?  

The owner tells me they are motivated to sell and willing to considerably discount the property for a fast transaction, without realtors, commissions, closing costs, etc.  

I have been drawing a blank on how to accomplish this.My best idea so far is to pay a higher percentage of collected rent to the management company, and then they are on the hook to pay for all repair and maintenance costs.