This reduces your housing payment and helps you build equity. 

Payment TermsContract Value: $[Insert Amount].Deposit: $[Insert Amount] due before the commencement of work.Payment Schedule: Payments to be made as follows:[Milestone 1 and payment amount].

I had a heart-to-heart with the contractor and made it clear what our expectations were and no more money (he was asking for a second payment of a three payment contract) would come his way. 

All told, cash flow will be a function of your down payment and your management of the property.FL tourism continues to flourish. 

While rates may not decrease, the significant double-digit increases should level off.

Treat this property as a business and factor in all the associated expenses, including mortgage payments (if you pull a loan), maintenance, and potential vacancy periods.To simplify management and make this less of a hands-on job, I’d strongly recommend working with a property management company.

I usually end up with a list of buyers with down payments but I don't have any more inventory for lack of inventory (capital).

Risks: rates go down and you have to pay a prepay of 2 or 3 %; you have to sell and pay the prepay; rents decline & you can't make the payment like any other type of loan; cost upfront a little more than conventional; need to find experienced broker licensed in the state where subject property sits; servicers are bulldogs. 

You could get most of your down payment back, or be able to pay off investors quickly.  

If you are going to be an owner-occupant, want a low down payment, and are planning to do a renovation, the FHA 203k and Fannie May Homestyle loans are your best optionsHow do you know the property is currently upside down on the mortgage?