The balance of probability says #1&2 are more likely :) 

Agreed....property taxes, a mortgage balance, any lien on the house....none of these are considered “closing costs”, they are a preexisting debt the seller owes and it comes out of his proceeds, period.

(Ideally you want at least six months of inventory to balance between sellers and buyers.)

I would say lack of funds and finding a team are stopping me from really achieving my goals. 

Set up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/alertsI hope BP helps you achieve your goals!

Most hard money will be interest only payments on the full approved balance of the loan whether or not if you have pull the draw funds for repairs.If you have any other questions, post them in the same thread below so that we can all learn from the answers.

@Geoffrey BissenIt is NOT always best practice to hold each property in an LLC.This is something you should discuss talking with an attorney/insurance agent with and formulate a gameplan based on your risk tolerance, risk exposure, net worth, etc.Holding a property for someone who has 25 properties would be overkill in compliance costs.1) Costs to form each LLC2) Annual Costs to keep each LLC active3) Bank fees for each LLC(which they may have if the bank requires a minimum balance)4) Bookkeeping fees if required for each separate LLC5) Registered agent fees for each LLCetc, etc etcMaybe the right exposure is 2, 3, 4 or 5 properties per LLC.Maybe you should get proper insurance and have one LLCor maybe you have one LLC that has a maximum value of $500,000 and have it insured up to that amount.

For example Auction buyers bid $110k deposit placed at auction $10k note rate 5% Unpaid balance $100k x 5%= $5000/12 mo. = $416.66 mo. . . .

What are you hoping to achieve? 

My main goal is to achieve great cash flow and a great cash on cash return.