So just recognize this could be lengthy process if they default.If it was me, I would take it as a non-refundable deposit with a letter of intent and a purchase and sale agreement that the money is a down payment, is not refundable and they must execute the closing by a specific date otherwise they forfeit the money.

I have made money because of a rising market, not becuase I have been smart or done anything right.

My parents put up most of the money for the down payment and they're crediting 10% of the rents as equity to me each month as payment for managing the property until we reach an equal equity position. 

Hi Joseph,You could go for a hard/private money and then refinancing out.

What if we need to borrow money to do some rehab before we move in???

They had the money in my bank account in a few days typical ACH time frame it seemed.

@Brandon Green - if you "set up a S-corp holding company that owns the LLCs holding the rental properties", and both are passthrough entities, and sell property, wouldn't the money pass to the S-corp and trigger the unfavorable conditions?  

Or should I rather seek a hard money lender?

The reality is that you need money for a lot more than the down payment.

Yeah there's money to be made, but at what risk, and o yeah drunk people at the beach pose a high risk.