IT always amazes me how often REI's will rationalize future equity (an unknown) that's based on forces out of their control that require many years to fulfill, over cash flow...which is today, and tomorrow money.If the market doesn't work, change the market...don't change your requirements for a good deal. 

When I put down earnest money deposit and if I back out or can’t fulfill it I lose the deposit that’s my consequence.

But, because they are acting as Real Estate Salespeople (finding a motivated seller, charging them a fee that is usually passed on to the buyer, finding a buyer, and then ensuring the transaction goes smoothly), they tend to fulfill the same middleman role. 

We are running into certain scenarios in which purchasing properties through VA financing is made difficult because the seller cannot deliver 1 of the units vacant (to fulfill the intent of use as the primary residence for at least a year check in the box).Even with month-to-month contracts or no contract at all.

I am now offering them a rent to own, so they can fulfill their dream of owning their place of business.I am involved in a mastermind now and learning a lot about how to handle things more professionally:- identifying a deal with value add opportunity - a "unicorn",- test driving the property during due diligence - see if the vacancies could be rented,- replace mom and pop with regional/national tenants.Would love to read the story of your first deal!

What I do have a problem with being taken advantage of by my partner.In February, I decided to put together a detailed list of obligations that he previously agreed to fulfill that he has not yet fulfilled.

The running of the business would have to have a negative affect on the unit (customers visiting, noise caused by the production or fulfillment of the items sold, etc). 

Or the property could be converted to a full time STR after the mandatory occupancy requirement had been fulfilled.

A long time ago we did letters fulfilled by a mail house.

All the questions you just asked can be fulfilled by someone who is already doing that role.