There’s definitely a lot of opportunity there, and I'm sure you'll find it both rewarding and challenging.A key part of successful fix and flip projects is securing the right funding.

Some arbitrage operators also try to get multi-year lease terms, security deposits waived, free rent up front, and the like.

It has worked so far, but there are few things about it that we've had issues with (security deposits, rent receipts, etc.).

@Dan Dares TMIf the "investing partners" are going to be passive, you need an SEC attorney since you are now creating a security.

You should use a state-specific lease that is clear regarding the start and end dates, the monthly rent, the fees that will be charged (ex. pets) and those that may be charged (ex late fee), the amount of the security deposit, and a clear list of rules associated with the property (no smoking inside is a big one as are rules related to parking).

Nope, too much of a security issue! 

This is because Mortgage backed securities are in direct competition with investors looking for "safer" investments backed by the full faith of the United States Government. 

After  exhausting security deposit is sometimes less expensive  to give them a stipend to leave.

I explained to the seller that my offer contained a substitution of collateral clauses and I would be exchanging the note they held on the subject home with a note of similar principal and interest secured by a different property of greater appraised value.

If the property is paid in cash and later a mortgage is secured does it impact the UBIT question above ?