Hi @Mario GonzalezI'm a Realtor/Investor who lives and invests in Philadelphia.Problem - some of the areas that make sense numbers-wise aren't particularly desirable places to live.1.

If it is a Join Ventur, that would be different than them supplying funds in a lending capacity expecting a return. 

Jack your rents up now so you can have a cushion when it is imposed.What I find most disheartening is the fact that rent control will prevent people trying to move into Chicago from finding desireable apartments.

Or does this get paid out of the funds received from the HML?

I mean I don't really care I am just funding the deals.. but in some markets and that's usually were there is a lot of older homes and or rougher areas wholeslaers are the ones putting deals together whether its legal or not. 

Do you currently have enough funds to pay first month’s rent, last month’s rent, and a security deposit?

Mainly I am thinking about if I should risk using 1031 exchange funds from the sale of one of my SFHs for a down payment or if I should wait until I have cash.

I plan to use hard money to fund a portion of the purchase.

It may violate all sales rules, but I tell new investors fairly regularly not to invest when I feel their objectives are misaligned with the fund we are offering.

I just bought a property about a month ago so I don't currently have the funds for the traditional 20% down on another property.