Best case scenario, the cash on cash return will be ~ 25% (taking into account low vacancy rate and minimal repairs).  

Rent schedules and delayed maintenance would be my concerns.

Hi @Jon Quigley  one of the ways to minimize your risk would be to insert a financing contingency in the contract. 

We also had issues with our general contractor who's subs weren't fully licensed and were careless, which resulted in several delays and several failed inspections.

Some great photos out there that show a great transformation with minimal resources 

Fast forward to today, the downturn finally hit the area, it was just delayed.

If there is a delay anticipated with the hard money lender you are really looking at a bridge loan rather than transactional funding because there is not earnest money at risk, which is what transactional funders would look to for comfort in funding the purchase.

I starting to believe he try to delay the project by claiming unreasonable payment(at least according to the contract).

Ron Snoes,We are expected to be able to submit them by the end of this week unless there is any further delay.

"Investing" in unsecured notes sounds very risky.Extending a loan without some form of lien or collateral in case of a default doesn't sound like a true investment by its literal definition.You could always minimize the risk (as much as you could) by checking income and credit report, but still...income could always stop for most W-2's.too risky for me, but everyone is different.as always, wish you luck!