The potential for being prosecuted for loan fraud could be considered a drawback.Google and read "HUD-92900-B".

Most wholesalers I suspect simply can't do that plus come up with the 10 to 20k in legal fees to prosecute the litigation.sometimes sellers change their minds its the risk real estate agents and ( wholesalers which are really real estate agents with no license) run.. it happens move on

“Our legislation would not only strengthen disclosure requirements and protections for homebuyers, but also help expose bad actors and facilitate their prosecution.”John Henneberger, co-director of the Texas Low Income Housing Information Service said: “These bills will help consumers be more informed about risky wrap-around mortgages and better protected from unscrupulous lenders.”Trish McAllister, executive director of the Texas Access to Justice Commission, added that the legislation will help families stay in their homes.

There are even government agencies that will prosecute complaints against you on behalf of the optionee.Protect yourself.  

How you prosecute your business is what they are looking at.

Thomas S. you are both right that a tenant like this is a major criminal and they can/should be prosecuted.

If default shall be made as set forth above, then, in any of such cases, the Landloard may, by written notice to the Tenant, immediately declare this lease terminated, and in such event, in addition to any other action or remedy which the Landloard may have at law or in equity to recover damages or otherwise by reason of a breach by the Tenant of provisions of this lease, the Landload shall have the right to remove the Tenant by summary proceedings and thereafter the Landlord may reenter upon and take possession of the demised premises and every part thereof, either by force or otherwise, without being liable to any prosecution, action of damages therefore and have and enjoy the demised premises as of its former estate free, clear and discharges of the lease and of all the right of the Tenant hereunder; and the Tenant also shall pay to the Landlord upon demand all fees and expenses, including reasonable attorney's fees, incurred in connection with and in obtaining possession of the demised premises as aforesaid.

There are a couple problems. 1) If you discriminate illegally you can be prosecuted for it.

Trust the numbers and fire/prosecute instantly.Remember - this is not passive income.  

Even if you are not prosecuted, the perpetrator/victim's family could bring civil suit against you.