I told him if he cleaned the house and was out by the end if the month I would deduct $1600 for current month rent from his $2400 security deposit, refund him the $800 balance and not seek judgement for the remaining lease balance.

You will get people redeem you within 1 week and some that will redeem after two years only days before you would get judgement on a foreclosure. 

The concern is how to protect the entity's assets if the owner ends up with a personal judgement against him. 

not to worry about judgements against the seller in a wrap transaction as they no longer own the property so the property can't be attached... due on sale is there its the alienation clause.. does it happen it can but not often.. but I had 2 called on me over the years.The danger in this transaction is squarely on the sellers credit. 

Ultimately you want a judgement against them for any money that they owe you.

Good morning, SWLR can be a block by block judgement call.

I'll defer to the judgement of more experienced syndicators, but it looks okay to me.  

Not only is this not a scam, but it's a great strategy for selling...and buying, for an investor.On another note, I would be very careful before jumping to judgement and calling out "scam" .

It's super easy to armchair quarterback what a PM does on a day-to-day basis and at some point you have to let them make those judgements and do their jobs.

Two problems I see is the work to get it looking like a decent place to live (for tenants) and perhaps violence and crime in the park (not sure if that is even an issue just a judgement call)