He spends the money and then you are presented with a 6K bill. 

As others have mentioned, you typically need some liquid capital to get a deal done even if a hard money lender was funding 100% of the deal for you. 

@Sarah Hadassah Negrón so you get a money judgment.Now you have to turn that into a garnishment action with the courts.To do that, you typcially need to have the tenant personally served - which means finding them or hiring a skip-tracer to do so.Then, what are you going to garnish?

looking longterm who knows what's going to happen in the market.The largest thing to be cautious about is that with commercial tenants you as the owner often have to put up money in the form of a check or abated or free rent to help the tenant get open for business and build out the space. 

I told him I didn't want to make my tenants pay more money but he insisted on it.

I owe around 168k on my primary but the last appraisal about 1 year ago came in at 422k.

That means that unless your state allows you to just keep their money you have to try to re-rent the house.

This would be the safest money but probably the costliest.Don't build a house of cards, Tyler.

People always think they will save money by managing themselves, but that is obviously not the case.Best of luck!

What if the deal loses money?