There is a lot of bad instruction/information out there. 

Thank you @Dan Gheesling for proving the step-by-step instructions for getting this done without the need for using any external services.

You will also need to give Bill your wiring instructions for your bank and work out any draw schedule.No offense, but this is not a good investment for Bill, the LTV is way to high and you have no skin in the game, i would not do this loan, but maybe Bill is more trusting, good luck.Rick

I'd live in one of the units for a year, buy the property distressed but in an appreciating area that I like, and build value into it (I'm a partner in a general contracting company so I can get pretty creative with renovations for cheap).My complication is that since I'm an entrepreneur/ partner in a family business all my income comes from 1099 and capital gains.

My day job is a tech startup entrepreneur.  

Even if escrowed, with proper instructions to return the money if the deal falls through, due to the lender's fault (and how do you establish that?)

Everyone on who currently lives there was either a direct participant in the program or is some how related to someone who currently lives there.I've spoken with the current property managment company, they recieved strict instructions to keep rents suppressed.

That's why, Kirsten, should you decide you want to do this, it is critical to find the right attorney so they can make sure to instruct you properly, so that all the loans you do are not subject to Safe Act and Dodd Frank, are business purpose loans, and don't run afowl of any state nuances.For example, in NH, if you own a gas station free and clear, (clearly a commercial property) and take out a loan against the property and use the proceeds to pay your kid's tuition, it is a household purpose loan, and is therefore residential.

Buyer instructs the Lender to provide loan status updates to Title Company and Seller.

Yeah...I think that this is the first lesson most aspiring entrepreneurs learn Kevin...make money TODAY.