When the tenant moves out and the funds are distributed either to the tenant or the landlord for damages, then the subaccount for that specific tenant has a zero balance and that subaccount is closed. 

Before moving forward, negotiate better terms with the hard money lender you initially spoke with and ensure the seller is fully on board with second position financing.

Move on.If they say, "maybe" or have lots of questions about the details, then move forward and pursue.#3  TRUST.   

2.The best way to obtain the necessary permits and ensure compliance moving forward?

I started with single-family homes and then moved on to condos, typically holding onto properties longer than I probably should.

I've only evicted a tenant through the court system three times in the last ten years, but I remove about a dozen tenants every year outside of the court system, all legally.Any tenant can move out in two weeks.

@Damini Dutta did you end up moving forward?

A 3/2 in CA is a bargain for $300K while in our markets, $300K would get you a move in ready 4/2 on the water. 

In Japan, it's the opposite, at least for structures (land and building values are separate). 

It’s exciting to hear about your plans to dive into this field, and Chicago is a fantastic market to explore once you move there.It sounds like you’re on the right track with your interest in House Hacking, Mid-Term Rentals, Short-Term Rentals, and the BRRRR strategy.