Short term hold < 3 years I would secure a line of credit. 

If you are securing the note on a loan you need to limit income contribution to those that are on the note. 

@Logan Logan A.undefinedYou can't be naive about construction techniques and be in real estate for very long, there are rip offs out there. $400 a layer does sound high, but you haven't mentioned how many squares or the size or the job either. :)

If appropriate, secure that against another property or the subject property (after close) with a second lien.  

I have since narrowed my sights onto what I think will be a great start for me.I look to purchase my first buy and hold in the next month or so and am more than excited to learn all I can along the way - the fact that it can provide an enormous amount of financial security for me and my family has helped in the way of motivation.

Dave, you are not learning how to value real estate in the investing podcasts, videos, books or other materials unless appraisal techniques are taught and I'd really be surprised if they mention or go past mentioning the three approaches to value.The computations to find the ARV are out there, but that doesn't give you the assessment of the valuation in your market. 

Arbitrary option fees can be predatory dealing because an option contract has a measurable and determinable value, there are appraisal techniques to determine the value of a real estate option.

I believe that becoming a real estate investor will enable me to achieve my most ambitious life goals as well as obtain a secure retirement.I'm looking forward to talking with and learning from the active community members!

I am reviewing my HUD statement and last 9 months taxes, security deposit for both sides, and prorated rent is in 200 section and is being applied to the loan which I am taking.My questions.

I am buying two duplex's which are currently rented, what is the rule or law when dealing with security deposits?