Forming an LLC might give them liability protection and a more formal business structure, but it's not essential.3.

It's essential to present your own lease agreement.

It's essential to screen your tenants thoroughly.

I got to my current financial success through a series of well thought out endeavors but with a massive sink or swim element as I am often self guided..."

He's essentially lost $150K.Run the numbers if he was renting it for 5 years (minus mortgage, property taxes, repairs, etc). 

Here's how it works:If their deposit is $1,500, they can either choose to pay the SD in full or elect to take out what is essentially a loan with Rhino Insurance and only pay $25 per month ($20 goes to Rhino and the remaining $5 goes to the PM company) toward their $1,500 SD.

Quote from @Chris Barrett: Yes, and if the buyer isn't able to close due to reasons other than allowable in the OTP you will lose your EMD and they'll owe you money that they apparently couldn't pay in the first place...As the person bringing the EMD you are essentially Joint Venturing on the contract and as such you have the right to cancel the contract just as much as the wholesaler.

The LLC would essentially serve as a business checking account to collect rental payments from your roommates/tenants and potential write-offs for expenses such as property repairs/maintenance.

@Michael Plaks When there's uncertainty, there's an element of human nature that loves to be provided with certitude.

You may not like their current deals/offerings, but I would call each of them and let them know what you are looking for - essentially your "buy box."