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.

And that they did tell you that the issue of intent could be mitigated by using the safe harbor of 2008-16. 

This has been a consideration anyways to mitigate risk.Long story short, the listing didn't include that there were tenants in place.

For this reason, I require a significantly higher deposit and last month's rent to mitigate the risk.

Usually there was some other mitigating circumstances. 

Those costs can be mitigated and delayed to a later date, but that raises the initial price you pay for the property.  

underwriter hereMAYBE you can get away with this, but with no contact from here it'll far be harder. part of risk mitigation is telling the story of the deal, but here we only have 1/2 the story, yours.

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.

Well my knowledge of the market players helps to mitigate risk for my client.

wait, you didn't list the prosthe risks you mentioned are correct, but can be mitigated and not nearly as bad as you said. you "risking it all" isn't really correct, market drops are temporary, you can get your money back out (and more) using BRRRonly focusing on the downside is a hard way to get ahead.