It's essential to present your own lease agreement.

I would think that participating in a sub to deal as a principle poses an even higher risk.

It's essential to screen your tenants thoroughly.

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.

You just need to accept a principle of delegation that there will always be things you would do differently then they do.

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.

If I were you I’d buy the investment properties while putting a little extra towards the principle on my primary mortgage each month.

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."