Hi Ben, actually we talked and I ended up working with Donny Gothard at Security National Mortgage Company and have been pretty happy with their 7 points 2% temp to perm program thus far, aside from hiccups along the way with processing from RedDoor who does the temp through them. 

I get the general idea of why a cash offer is better, it's quicker, more secure, probably won't fall through in escrow, can display POF.But other than that, if you are underwritten and already approved for a loan amount, what's the huge difference if the seller still is going to get the same amount of money in the end, say $2M from a cash offer versus $2M from a person borrowing.

Victor who runs it is a very interesting and intelligent person and the group there is mostly experienced players. good luck.

Hey @Dan Madden pretty cool having a pro Tennis player around.

The area is zoned for a max 4/5 stories with 15 units total, 12 of which are market rate.Construction financing is secured as I have a relationship with a hard money lender who is interested in financing the project, but would need to assume the property next door to move forward with a construction loan.

But using a year lease will secure the income, or your right thereto at least, for an entire year.

As someone with limited capital who is looking for a MFR for his/her first purchase, I don't really see how this financing option could be a bad thing; especially if, like me, your focus is on cash flow.If I pick up a MFR on a 5/1 or even 10/1 VA loan, recycle the profits to bulk up reserves and equity then I'm paying less to make my property a more secure investment.

I was wondering if by law I am allowed to take what they owe me from their security deposit.

IE I am getting paid off so I see who the lenders are.. also some other players coming in areLima OneLendingoneand then you have regional community banks.. although in my experience with them.. is PG and full recourse is the norm.. or as @Mike Makkar  you have significant assets or liquidity in a company that they can tag.

Tip: Only accept a money order or cashier's check from the applicant for first month's rent and security deposit.