Just to be safe on your end as well you can insert a clause into the initial contract agreement stating that anything that goes past the agreed schedule scope of work (time wise) can be an additional amount per day.  

Better to be safe than pay a fine. 

The reason I mostly agree agree with Joe is that I do not believe letting the money sit in an FDIC insured account is making good use of the money and so I would not recommend that use.So I mostly agree with Joe with an exception for a case where you are not leveraging the money on another investment (not leveraging the money includes leaving it in a FDIC insured account or placing it in the safe under your refrigerator).Good luck

He is house hacking the property and cash flowing day one.At the end of the day real estate is personal and you should take action that feels safe while getting you closer to your goals.I am located in the area and happy to chat about your specific situation if you’d like.

Hard to imagine even after all this that Atlanta will be a safe place to be a STR host.

Which makes me wonder if materials alone qualify for any of these safe harbors?

My recommendation is to choose cities in safe and economically diversified areas with above-average income and population growth.

I am starting to look for duplex/triplex in the Houston area.i am working with a realtor who's sending some properties my way, but, as probably most of you, i am not 100% certain if i should go big on my first deal or play it safe in a different area (out of Texas maybe) and start with a much lower investment.What is your advice/experience?

Once I find someone who wants to sell, and we agree on a price how do I obtain the real estate purchase agreement and know that I'm doing it safely/legally.

Let's assume we average a conservative 6% appreciation over the next 10 years.Sale price in 2032 = $268,627Closing costs = $21,490Net Proceeds = $247,137Initial Investment = $155,000Total 10 year return = $247,137+120,000 - $155,000 = $212,137 in 10 years or an annual return of about $21,214.That's about a 9% return (compound interest) on your initial 155,000 investment in a safe liquid asset.Rents and sale prices in the Muskegon, Battle Creek and Kalamazoo areas are running lower so if you have less money you could get the same gains over there with less capital outlayAs you know, the BRRRR method involves REHAB to gain some sweat equity.