My opinion is not to do that, if the person has trouble with the deposit, any unforeseen financial circumstances they encounter could result in no rent for you (though I know others are ok with this).

Or, Realtors sometimes step up and pay for minor repairs, anyone can, a lender may not allow the buyer to pay due to funds required post closing.Repairs required are unknown as to latent defects, you can't contract for either party to pay unforeseen expenses or expenses that are not ascertainable at the time of contracting, I'd say any contract that has such a provision was generated by some guru or slick type investor and will be unenforceable.Both parties have the right to avoid a contract upon the timely discovery of economic conditions that they would not have entered into if those matters were know prior to contracting.

There should be 10-15% in reserve for unforeseen issues.  

Barring any unforeseen costs, I think this is one of the easier ways for me to enter the REI world.

I do recommend having HELOCs and significant pooled cash reserves to protect against the unforeseen--be that a credit crisis, higher vacancies than you expected, or any other form of "uh oh". 

This is rehab and challenges both seen and unforeseen arise.

We did run into unforeseen issues with the plumbing and had use the contingency money that is held back Which reminds me.  

I agree with having things written out, who does what as well as an exit/buy-out if one partner wants out for unforeseen reasons.  

Developing various income and/or exit strategies to be able to transition if a deal takes an unforeseen turn or you need more resources for a new opportunity that crosses the table.Best of Luck!

Please feel free to weigh in on these, expand on them, or correct any of these if I'm missing any unforeseen consequences.Pros for buyers (kids): keeping the home within the family, determine own financing terms, gives mom flexibility to downsize when she feels ready, no loan costs, keeps real estate agents away that are pushing her to sell before she's ready to earn a commission.