The scenario I listed above is based on no big impact on the tenant such as the house is excessively warm or cold.

The way the mortgage company gets their money back is to file a claim on the excess proceeds of the sale (anything more than the taxes due plus fees). 

They generally cover that expense group and have excess fee funds left over for some GP/syndicator profits.

Most of the draws in this appear to be overinflated and have you placing out funds in excess of work completed.

Thanks for simplifying the math that really helped ;) Hi Andrea You can talk to brandon brooks or bob thomas at merchants mortgage they’re a hard money lender can help you finance up to 90% of cost purchase, 100% rehab, for a total of 75% ARV or after repair value and they will hold back the rehab and cash out proceeds for you too so if you don’t use it all, once you refinance you can get it all released to you as “excess proceeds.”

I find old dried up food and dirty floors disgusting.

Looking back I'll admit that was excessive and I definitely reached analysis paralysis, but it got me VERY mentally prepared and to date, I have never lost money on a deal (knock-on-wood).2. 

Any excess cost in winter, which will be low or very low, you split with tenant.

I take out the money every 3-4 months to have excess for expenses and emergencies.My reasoning for paying off home is that it's the safest investment that I can think of because of the Florida Homestead exemption Law. 

But possibly construction garages or larger dry storage...??