They're usually administered through community develop loan funds or similar orgs and, once again, are usually earmarked for those who are politically connected (i.e., the grifters).

Hey Yannik, a couple things jump out at me on this deal.First, it doesn't appear you're earmarking enough for repairs/maintenance/capex.

We've gone through the process with the insurance company and have apx ~$250k toward the rebuild/renovations ($200k is currently with the mortgage company in escrow and another $50k earmarked for code upgrades, depreciation, etc). 

Ultimately, these challenges culminated in widespread layoffs at FlipOS, which forced me into involuntary cancel contracts for properties originally earmarked for sale to them.

After just one year, when that tenant vacated, FPM charged an additional $2,800 in turnover costs, with $770 earmarked just for touching up paint on a single wall—borderline comical.

If you have extra money that you haven't earmarked for additional RE I would do TSM index funds for a truly passive investment. 

@Preston Dean I personally like to make sure I have a set amount of reserves for each property to cover things, so if you have a pool of funds sitting aside personally I would just earmark a certain amount that you don't touch except for that property (or an emergency).

If not, pay off the mortgage all at once.This will help keep you from rationalizing a bad rental purchase just because you earmarked the funds for it. 

Other loans may be the opposite, with the money being disbursed after you have completed the task that the money is earmarked for.Many contractors would be completely fine waiting a couple days to get paid. 72 hours(48 for contractor review, 24 for funds availability) is essentially nothing in the contractor world.

The amount is not earmarked for a specific investment and ownership in a particular piece of real estate becomes a little hazy.