Having done a few rehabs now while working a full time day job I can tell you that I’m leaning more and more towards having someone else do all of the work.

Do you do this as a full-time job?

The title to all property sold on contract shall be retained in the name of the county until full payment has been made by the purchaser.

If I pull out for instance $100k, I get hit with a 10k (10%) penalty then taxes (assume 25% federal, 5% state) on the full 100k as well right? 

Problem I have is how to finance a property that is in need of a full rehab to get it rent ready.  

That one was full of termites and you had to walk away, termites are eating and you're making more offers.

I listed it for 289k and got multiple full offers the first day on the market.

When it's time for retirement they then move into the vacation rental full time and convert it into their retirement residence. 

The asking price for the home is 132k.OPTION 1 – Cash After Repair Value = $132,000 (estimate)Discount 80% of ARV = $ -26,400Repairs (Price per square foot) 1,190 x $5 = $ - 5,950Cash Price (seller pays closing cost) = $99,650OPTION 2 – Sandwich Lease Option – “Perfect Tenant Program” Term: Minimum 5 yearsOption Price (buyer pays closing cost): 125,500Option Consideration (non-refundable fee we pay you): + $500Monthly Rent: $950 (profit + $100 cash flow per month)Total profit (If completed full term): $132,000Note: We are the tenant-buyer, but we will sub-lease the house to another tenant-buyer.

so it comes full circle.