Unfortunately I made all the mistakes of not having a new contractor sign a detailed contract and we gave him draws before verifying work was actually completed.

@Stanford Neal Mead can you provide more details about the area of town?

Hi AllWould like to share this with fellow BP members.This is a property I just purchased, this will be a buy and hold and look at perhaps flipping next year in spring time.https://www.realtor.com/realestateandhomes-detail/...This was purchased for $61,000, with a rental estimate of between $1000-1100.End values for a nice rehabbed home in this location will fetch around $150,000Location is Bagley in Detroit, it is an up and coming neighbourhood with high demand, I expect prices to continue to rise. 

Without getting into the nitty gritty details of this particular deal, I generally would like to do know what type of loan is best for the initial short-term loan in a BRRR deal.  

DFW is growing and it all hinges on when/if that growth will stop.2017 DFW added 32,000 new rental units (Source)From June 2017 to June 2018 35,000 new homes starts (Source)2018 DFW has issued 19,000 new permits for rental unit construction (Source)The last of these sources from Texas A&M gives some great detail on market absorption of the new units and demand/vacancy rates.

Write the tenant a formal letter detailing exactly what they owe and demanding payment within 30 days.

But your detail of the scenario has cleared things up, and has actually helped to understand the whole process much better.

It may sound nice to pay a 5% management fee but the extra fees can add up to be more than the other company that charges 10% with no add-on fees.

If you have questions on that let me know and I can go into more details. 

Yes, some extra cuts, but way more stable.