They will evaluate the contract with the builder and the budget, make sure it falls within market median costs, and set milestones for draw requests. 

Here is an example of that color on a house I have going on the market next week in New Orleans.

- How common is it to find loans with these terms in the industry?

Market rate right now is $1200/mo and with renovations (quoted 60-75k in labor) it's hard to say because there aren't much data points, but I think I could fetch $1500-1600/mo.

What inspired you to do that versus focusing on one or two specific markets? 

Quote from @Eric Lahoda: It depends on the market and your skills as a landlord.

In the meantime, I am trying to better understand the Indianapolis (Fishers, Carmel) real estate market and considering getting a realtors license.In Indiana, the cost for the real estate licensing course is approximately ~$580 and an additional ~$80 annually to maintain.

I'd love to help more people get started in the industry and want to connect with some new agents!

My wife and I are very confident in the work/knowledge needed for flipping our first home and we have lots of connections in the construction industry for the things we are not sure about.

Essentially you are plugging in all of your data and they are using market price studied to generate your deductions.