Will he/she ignore that to always calculate in some reserves or will those mitigating circumstances actually be considered?

Just mitigating my risk as I'm already in the hole.

I don't deal with borrowers, I deal with loss mitigation firms, servicers, attorneys and property managers.

I see these 3 story units popping up in our area and they have all sorts of rent specials.. so I guess I would worry about people leaving for rent specials.. but if you are in an area were new construction of the units is not possible or feasible that could mitigate that risk.but do talk to an expert..  

We didnt have time to bring a mold mitigation contractor to look at it yet but from what we can see, at least 2 rooms and a bathroom in the basement will have to be demolished or gutted and redone after fixing the mold issue.

It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.Make sure your property manager is a licensed real estate brokerage.Understand you can not eliminate all risk, only mitigate it.

I’ve already learned so much, and want to continue learning so that I can mitigate my risks and be in the best position possible when it comes time for my first deal.

This will give you the best coverage for Catastrophic losses but also mitigate the cost of insurance as much as possible.

However there is only 10 days or so left and I'm trying to mitigate risk and not start a legal battle if all will just be well at the 30 day mark.My question pertains to the back tenant and the deposit i already have on hand from the sellers and if i can use it to pay the back tenant deposit back.... they haven't responded yet but i asked the renter if they used their deposit for last months rent from previous owner...

The cash flow in the areas you describe can be immense and there are many ways to mitigate the risk.