Requiring renter's insurance (separate from your property insurance) is also very important since they typically would not have the cash reserves to pay for a major damage such as water damage, ruined floors, fire/smoke damage, and you will be sued by 3rd parties if something happens to them while at the house if they have to go to the ER. 

Why, because of the extra work on my part to administer the hold backs, draws, inspections, etc.Now I can offer rehab money if they are willing to accept a third-party funds control company.

There isn't the same level of regulation or scrutiny as with residential lease options, which are subject to specific tenant protections.Flexibility: Lease options can provide flexibility for both parties.

Another thing I also believe is often overlooked is the creation of a Management LLC (an entity that will hold no assets but will deal with all third parties (tenants, contractors, etc)). 

Lastly, something to think about: a few investors set up a management LLC that will not own any property but, in turn, deal with any third parties.

It's being claimed that it's illegal to ask third parties questions now? 

We mostly work with investors and we want to make sure this relationship works for both parties.

Prospect sees our property ad on the 3rd party wesbite, clicks on contact an agent and the scammer gets their phone number.Any other landlords experiencing anything like this?

The one thing to note is that these lenders typically have a minimum loan amount of $100K (Purchase Price + Rehab), and they will not require you to provide paystubs or tax returns.Yes the hardest part is the purchase price.

This part is where strategy kicks in.