You only pay interest on the amount used and you can use it on a ongoing bases. 

Should i encash the balance amount shes sent me?

If you are going to include utilities in the rent you have to increase their portion of the amount since tenants are notoriously wasteful when they are not paying the bills.You also need to see if you can find a market rent for your type of unit.

Outside of that I'm not too familiar with the loan process in regards to what amount of money would actually make a significant difference when getting approved. 

Do you have a payoff showing that $496k is what is truly owed including the deferred amount?

I'm currently looking to network with more investor friendly real estate agents in the San Antonio area, specifically focusing in the Northeast section of San Antonio.I'm looking for single family homes within the $70,000 - $160,000 that need a pretty considerable amount of TLC and rehab with the intent to BRRRR them or flip them. 

With the HomePossible loan, does the borrower need to occupy the home they’re purchasing for a set amount of time before renting it out (multi family home) ?

I read in the past where newbies have provided really low repair cost and when the actual buyer sees the home, the amount doesn't match.

If it's the same amount of time then I don't offer a concession.

People tend to put a certain amount of asset under one LLC based on associated risk or location.