The difference between a safety line and a safety net is that a safety net (your words) can break one line and still hold a fish. 

Actual money, measured in dollars.

NCREIF (National Council of Real Estate Investment Fiduciaries) is a member-driven, not-for-profit association that improvesprivate real estate investment industry knowledge by providing transparent and consistent data, performance measurement,analytics, standards and education.

Although it does reduce the premium slightly for that particular rating factor, it is not optional on the part of the HOA as an intentional cost saving measure.  

You sort of noted in your opening comment: a track record IN REAL ESTATE, should be measured in decades, not years.  

For the most part its just health and safety items, which are items we should have remedied anyways.As someone else mentioned, biggest thing to avoid is having the house tagged as vacant which the city will do if it sits empty for too long (handful of months, grass not cut, etc).

He has no safety net so I don't think its wise to take the risk because if he did a deal, lost disability and then since hes brand new to REI lets say it takes a while until he gets his next deal I just want to help advise him best!

Gov. mandates, laws, regulations, these are tools to control WHAT the product/service is, think safety focused. mandating no lead in toys, or fall-arrest gear for roofers, things like that, THAT is where it works. 

The question is, what measure would you advise putting in your contract to help omit any ambiguity within the investor contractor relationship? 

I do plan to buy a property with 30% to 50% off and have it "acts" as a margin of safety.