Operate with integrity and surround yourself with people who do the same, and things will have a tendency to work out in your favor.  

I know back then properties were worth way more and since the downturn and the current upswing people have a tendency to over pay for properties thinking when they finish the property it will be worth more than the original ARV.I would have another experienced investor look at your numbers.

In my market, some of these people at small no name brokerages have a tendency to have no clue what they are doing.Fit and comfort level are really important too.

But I won't get into that more than to say they have a tendency to overshare and seem to be in a perpetual state of angst. 

At end of day I don’t want cash sitting there, even if I am expecting some of these homes to lose $50-$100k value ($700k target purchases right now). 

There is more charitable organizations then one can list, at end of day the tenant needs to take care of the tenant -OR- landlord can take on being parent for ALL tenants, that's simply the law and operate outside of that it's merely a question of when, when will be caught, what actions will be taken, and the fall-out from that. 

We will then decide if we will repair the items or provide a written explanation of why we are not -- for example, chip in counter, cosmetic only, will add it to list of discrepancies tenant will not be responsible for at end of lease term. 

Should insure for more than loan amountCan pay interest at end of term or up frontCan offer interest payments or % of profit (not both) – interest will be 8% - 12%Lender will provide release of lien when loan is repaid

New landlords have a tendency to want to charge for everything, and even though I think we should be able to, the courts feel differently. 

Monthly rent: $6800 ($81600 annual)Vacancy: 5%Property tax: $12000/yrInsurance: $1550Maintenance & Repairs + Cap Ex: $5000Utilities (water, gardening, trash, electricity): $4570Total cash in pocket at end of year: $54000Cash ROI = 4.53%!!