Can't you come together and figure out a solution where he returns and addresses your concerns and collects the $2K?

I know that my COC my be lower, etc but my main concern since its my first property is being cash flow positive.  

I understand not buying more up there, but your initial investment there will turn out well.You can check out the BiggerPockets video podcast and leave a comment if you have questions. 

Then you need to leave 40%-50% of your money in the deal to get it refinanced which then makes it difficult to scale. 

Depending on where it is, your biggest concern should be will the new furnace, AC and hot water tank will still be there after you close.

Hopefully all of your residents are feeling merry.While Santa does need to give 24 hours notice before going down a chimney into a resident's space, does he have any plans to leave a present at your properties?

So don't leave anything in an MTR that is irreplaceable.In addition to security deposits, you can also use the AirCover program for Airbnb bookings and third party services like Waivo and Safely that provide mini insurance per booking.

Most come out ahead over an extended period of time by buying better quality assets where they perhaps have to leave some capital in the property but find themselves able to sell for real gains or refinance out appreciated equity and scale more effectively that way. 

My main concern is whether it's hard to meet their criteria for properties and secure funding.

As stated in this thread, I believe BL does not let you keep your data if you leave the platform which is not good business practice, IMO.