I have been threatened with a citation from the city twice and have actually incurred a fine for the first offense, which was not taken care of quickly enough. 

I think it would be very wise for you, since this is your first deal, to get some serious training before you make a final commitment to this property.

My fault: I didn't add a fine or fee for violating this specific rule.

This potentially caused us to lose out on a few other tenants who were ready to begin the lease ASAP, but we decided to go with this couple because they had better credit scores and financial situation.Does anyone have any advice on ways to prevent this from happening, such as including a fine for people backing out or requesting the security deposit upon signing of the lease?

What to offer in a finance rate? 

@Adam Thomas Welu the quality of turn-key companies can vary a lot, Here are some key things to look for.In general, the ones to avoid are the ones that: Don't allow financing or a finance contingency (it can be a good indication they are selling above market value) Don't allow for your own independent property inspection Are not realistic with their pro forma's (i.e. they don't include vacancy or maintenance projections or use unrealistically low vacancy factors) Require you to pay for any renovation upfront Sell only in cheap. low end neighborhoods Don't accurately represent the neighborhood/property classification Don't have consistent rehab standards for all properties Don't provide a scope of work for the property Can't provide references of repeat investors

If so, just make sure you don't sign anything in the title docs that states the title company and add any additional exceptions found during a final search.

How long it could take, the repairs and then listing and then all those inspections and a finally closing.. can it take 6 months?

When a tenant wraps up we send them a final invoice that shows what charges (if any) were deducted from the deposit and the remaining balance to be refunded, or remainder that they owe.

One thing I love about REI is there are so many aspects to it and as a finance guy, I get to geek out over REI spreadsheets and numbers!