The easiest way to think of the draws is like a reimbursement where after you complete work on the property, the lender sends out an inspector to confirm that work has been completed then gives you funds according to what has been done.You should be using a lender for the purchase as well since purchase and rehabs offer the highest % of purchase price.

I guess I like the aspect of having an experienced investor to guide me through the entire process.  

You’ll likely qualify for better interest rates and lower down payments with a conventional loan in your personal name.

Good in the long term so I didn't have to worry about the utility bill but like you mentioned - high upfront costs and time consuming. - Equal Splitting (ratio utility billing) - What I've heard from lawyer friends who practice real estate law is a trending spike in resident issues.

She had 2 other investors look at the property but seems like she liked my offer the most.

For you, you likely have crossed the level of it being a trade or business.

But it looks like you better be prepared to comply.Non-Compliance is $500 per day.

Of course, putting more down like 30 % would make it look like the property cash flows well, but is it worth it to put that much down, or is 20 or 25% down better depending on which gives you a better interest rate?  

(They’re also in the midst of being evicted for non-payment so I feel like I don’t have that much to lose here).

Hey Bans,  the ARM seems like a great option for the increased cash flow in the short term and interest savings for the 5 year period.