I was more looking for the mechanics of it.

That is because they are highly mechanical devices.

My insurance company charges a lot more if the the home is older and does not have documented updates to the electrical and mechanical systems. 

I would focus in on the mechanical setup of the building to make sure you won't have big issues going forward with it.

How are the mechanicals?

Foundation, mechanicals, baths, kitchen.

If anyone can share the process/mechanics of the actual funding process including:1) Does private lender fund the project ahead of closing? 

My wife is an REO broker and she has not sold thousands (hundreds though :P) and I have seen all sorts of weird things, mechanic liens, 2nd and 3rd mortgages, multiple bankruptcies to re start the process.

I recently graduated college and started my career as a mechanical engineer and have recently decided that while I love my job I don't want to work for the rest of my life, and real estate investing makes the most sense to me in order to gain financial freedom before I turn 60.I have been reading a ton of real estate books and discovered the bigger pockets book on rental property investing which gave me a great introduction to all the topics and possibilities in real estate.

Not just the money that ends up being put into them but also, I run a restaurant full time (70+ hours a week) and then do the REI on the side, so Idon't have time to work on my own vehicle or have it going back to the mechanics much since I need my vehicle all the time!