Most hard money will be interest only payments on the full approved balance of the loan whether or not if you have pull the draw funds for repairs.If you have any other questions, post them below so that we can all learn from the answers.As far as insurance goes, I always go with a Builders Risk policy if the rehab is going to be $15,000 or more.

Feel free to private message me or text me at my number below and we can talk. 

I don't have experience with this kind of deal; but personally I'd probably want to have a contract saying that after he does the flip he'll sell it to me for 20% below appraised value.

Also how much do you guys think it will roughly cost to build a 300 sqft studio like structure with a kitchen, laundry, and bathroom. i appreciate the help, let me know if more detail is needed. below are the guidelines for the adu in accordance with the city. 

Cost segregation combined with bonus depreciation is huge.A lot easier to 1031 one 100 unit property than 100 individual houses.Apartment rehab often stays below the $2500 de minimis safe harbor per item (because apartment communities don't pay retail) - which means immediate deduction and no future depreciation recapture (i.e. an HVAC replacement may only cost $2400).Some apartment rehab above $2500 per item can be immediately deducted if it does not meet the 20% "unit of property" rules (i.e. replace one HVAC system in a ten unit building).

Would the 3 below scenarios work with airbnb1.

There's plenty of demand for houses $500k and below in town and not enough supply.  

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Out here, you can't get into conventional loans on amounts below about 65K and frequently we end up paying for an appraisal and the underwriter can come back with the determination that the property can't be financed due to condition.

As an Agent if I purchase from a wholesaler to A/B close by wholetailing would the below disclosure give me the ownership interest to list on MLS as agent owner??