I've just done the work myself: get a judgment, file to have wages garnished, place liens on any property they may own (I've had some people come up as being on joint title on a property).Some people will sent up a payment plan as soon as the sheriff shows up to serve them with papers because they're so embarrassed!

Devin,Just a warning about checkbook IRAs: Self Dealing Activities will get your entire IRA disallowed and you will have to pay the tax on all your money.Self Dealing Activities are frighteningly easy to do.Do a Copilot search for "Problems with checkbook IRA plans."

What should I tell them my plan for the funds are?

Then once you close on the house take out a standard 30 year mortgage to pay off the hard money loan?

.- Maintaining Property Value: Renting to reliable tenants who pay on time and take care of the property helps maintain its value.

I assume since I have plenty of basis, I would pay no tax as I'm not overdrawing my basis.

But if the note pays as planned (which is the hope of cash flow investors) we don't reap any monetary benefit from property appreciation. 

On May 30th we also presented them with a written lease, which they refused to sign.The tenant informed us verbally and through text message that they would pay the rent increase but would be moving at the end of August to low-income housing.

My goal is to pay off bills from the construction, remove my co-singer, and purchase another property out of NYC. - The loan is an FHA at 3.25% Please help before I do something stupid!!! 

I don't think I should have to pay individual fees for each transaction, but am I wrong in this?