I self manage our rentals (we had been using Empire but I want happy with their services) and use Cozy to run background/credit along with all the paperwork.

Like that report ot the 3 credit agencies and send letters for you?

Just a lot of systems, paperwork organization, and staying abreast of/within the law (required notices, addendums, etc.).3) The screening criteria we use:650 credit score or aboveIncome 3x the monthly rentNo pets (depending on the property)No smokingNo evictions, notices to comply, or money owed to landlords in the past 12 monthsProof of income and financial responsibilityAdditional:First, last, and security deposit due at signing750+ credit score does not require last month rent (helps incentivize quality tenants)Best of luck!

He has bad credit so he can't get a regular mortgage. 

Personal funds and a loan with GreenState Credit Union which is based off our holdings portfolio.

To do this I found you need (1) local type lender that keeps notes in their portfolio, (2) good credit and track record, and (3) leverage at 50% or less.  

Should I write up an ammendment to the contract stating in the case the insurance claim isn’t approved and carried out, that I can get X amount in seller credits?

The $10k was put onto a credit card so in essence they spent $10K in asset protection fees to create a liability.

Both have credit scores of less than 550 and less than 60 % on-time payments.

The leverage you can access is typically contingent on the credit score, experience, loan amount, ARV, purchase price and property location