I believe you could use the funds to make a much better investment. 

What documentation is required to release funds to the estateI am asking this because out of respect for my tenant, who I really liked, I tried to be compassionate to his family.

With all that said we have spent a ton of money for data looking at foreclosure rates, banking rates, where jobs are being created, where jobs are losing out, where schools are seeing rapid raises in enrollment, where governments at the local levels have been tax friendlier, where inventory on the open pubic markets are not meeting demand, and house transactions.

It was on the escrow statement and it was paid from their funds. 

I do not have enough funds (or experience) to take on all of these at once.

Maybe pay equal to one month's rent up front so they have funds for a deposit on a new place and then pay another month of rent after they are out.

I've had lenders the past actually do research on the gift giver, and deny loans based on where the gift giver got the funds..  

If your in the loan for 6 months my back of the napkin numbers are 9 grand for the cost of money alone (points, 1k fees, interest) 12 months puts you at 13 or 14k.Make sure you understand any fees associated with the draw process, a HML will disburse funds to you as you complete rehab, sometimes this incurs fees.This deal may be viable but the costs add up fast.

I was in the exact same boat about 1.5 years ago Justin.The properties that I buy are Very inexpensive, so this strategy wouldn’t be as effective on properties sat over 100k...Basically, my first 2 deals were home runs, meaning after the renovations we more than doubled our inItIal Imveatment.Purcjase prIce on house 1 was 24k, +6k In remIbatIons whIch I funded wIth cash. we refIed that one for 70k whIch resulted In mt InItIal onbeatment comong back plus an extra 30k or so.

I'm currently managing a small impact investing fund in Madison, and am looking to increase my involvement in the real estate industry.