You are free to choose how to store it, and whether that account will earn interest or not.

Feel free to contact me with any more q's.

Did you have your own cash available that you used?

That means the -ve cash flow will be my housing costs. 

I never regretted keeping my first house as a rental because it cash flowed very well from the beginning and as years passed and rent increased it became an outstanding decision .However, our home was significantly less expensive than yours.

You need to vet them for what they are bringing to the table (cash/project management experience/contractors/etc.)A good hard money company that can work with investors on the loan and/or construction costs.

I am helping a client who is also a Veteran to do this exact thing right now; at first he wasn't sure he wanted to move twice to make it happen, but when he realized he was going to basically get a cash flowing rental property for free(no money down) he realized it was an easy decision.

.- Title Contingency: Include a contingency that the buyer receives clear and marketable title to the property, free of any liens, encumbrances, or legal issues.- Seller Disclosures: Specify that the buyer's acceptance is subject to reviewing and approving all seller disclosures and documents related to the property's condition and history.Timeline and Deadlines: Clearly outline deadlines for completing inspections, securing financing, and satisfying other contingencies.

Not to mention the ARV would get a little bump if you were interested in cash out refi on the property along with a rent raise. 

Have plenty of SFRs to collateralize with second mortgages but do not own any of them free and clear.