It's used, and long been used, in normalized settings for example in selling a property "subject-to" sellers securing a new primary residence themself.

You could secure the loan / partnership with a 2nd lien against the property to help guarantee their position. 

They will often voluntarily come up with increased security deposits, easily accept month-to-month rental contracts, and find other ways to work with you.

Do you want to gain a competitive edge and secure better terms?

The yard is not secure, and may not be used as an enclosure for pets.  

Victor,I would avoid that high cost ADU and use that money to invest outside of California.

I would want some major security deposit on file - maybe 6 months rent (personally), and / or possibly have them carry an insurance policy with you as the named insured for a descent value for any damages, etc - with the policy specifically written for the type of business they are actually running.

When the lease is fulfilled, the security deposit will be returned to the LEASE SIGNERS, less any repair costs and unpaid charges.

What strategies do you use to identify profitable fix and flip opportunities and How do you secure funding for your fix and flip projects?

Would like to know how you secured the BLOC.