After we gave him additional time to come up with the money (a mistake I know), he said he COULD pay, but that it would only be in cash (not in the lease) and we would have to come pick it up.  

The paint is never going to be perfect and its far easier to pick up on imperfections in a vacant house.

Quote from @John Williams: You just picked a new market to invest in.

Living in Iowa how could we pick our own papaya?

I'm working through the "picking a market" worksheet and workshop, and there are no clear instructions on how to find this. i've tried googling it, and referencing my data aggregators, but usually data goes back a year, 2-3 if I'm lucky. 

Sometimes you need to turn down applicants even though you have not picked someone to sign with yet. 

Now understand, I am not picking on you, I am simply explaining the process you are going  into.

Things were picking up in the market a little bit, but not enough.

How confident are you that you'll be able to pick up something good in the 2-4 unit space? 

All of the rooms should have locks on them (and they shouldn't unlock unless the correct code is entered) and if one of them picks a lock to go in a vacant room, that should be automatic lease violation and eviction.