I don't think that a higher profit for a motivated seller is insufficient.

If it is done improperly or insufficiently sized piping is used, it can not adequately vent CO.  

Whether having someone else fund the down payment, the acquistion or the rehab, using someone else's money is a common strategy.Certainly, as we get into larger and larger deals, we will eventually reach a point in which our own funds will be insufficient to take down a bigger deal.

Notwithstanding this section, a licensee may not pay or offer to pay a referral fee or finder's fee to an unlicensed individual that is not a party in the real estate transaction;(12) violates any provision of law relating to a buyer's freedom of choice in choosing an attorney, insurance agent, title insurance agent, or any other service provider to facilitate the buyer's real estate transaction;(13) fails to disclose in accordance with Section 40-57-139 the party or parties for whom the licensee will be acting as an agent in a real estate transaction;(14) receives compensation in a real estate transaction or directly resulting from a real estate transaction from more than one party except with the full knowledge and written consent of all parties;(15) represents more than one party in a real estate transaction without the full written knowledge and consent of all parties the licensee represents as provided in Section 40-57-137(M);(16) acts in the dual capacity of agent and undisclosed principal in a real estate transaction;(17) accepts deposit money which is to be delivered to the licensee's principal in a real estate transaction without informing the payor and having the payor acknowledge in writing who will hold the money received by the licensee;(18) issues a check in connection with his real estate business which is returned for insufficient funds or closed account;(19) fails to disclose in accordance with Section 40-57-137 any material facts concerning a real estate transaction;(20) violates any provision of this chapter or a regulation promulgated under this chapter;(21) violates a rule or order of the commission.(22) induces a party to break a contract of sale or lease, listing agreement, or buyer agency agreement;(23) engages in a practice or takes action inconsistent with the agency relationship that other real estate licensees have established with their clients;(24) fails upon probable cause of an investigator of the commission to make all records required to be maintained under this chapter available to the commission for inspection and copying by the commission or fails to appear upon probable cause for an interview with an investigator of the commission.

If not, the state can certainly have a finding of no probable cause or insufficient evidence.

Btw, back when I used to use agents to buy property, I had one who refused to put in an offer significantly lower than list price - a loft condo that had all legal issues, insufficient owner-occupants, HOA disaster, structural issues, etc.

Since this is being done within an LLC (as it should), and since there are different classes of membership interests (2 that I can ascertain), there are multiple factors to work out, some of which apply even when there's just one class of membership interest:How initial capital contributions, for each given class, are booked.How subsequent capital contributions, if any, for each given class, are booked.How member loans are booked.How each member's capital account will be handled pursuant to Treasury Regulation §1.704-1(b)(2)(iv), and how reevaluation of said accounts will take place per Treasury Regulation §1.704-1(b)(2)(iv)(f), to conform with §1.704-1(b)(2)(iv)(g).How distributions will be allocated, including profits and losses, along with any resulting adjustment of percentage interests.How tax allocations will be handled - and if the book value of any company property is adjusted per Treasury Regulation §1.704-3, how that affects member allocations.I have not even covered every item that must be addressed (including voting rights, depreciation allocation, cash flow vs liquidation allocations (as in "when we sell a property - who gets how much of the appreciation, but what about the recapture, etc, etc.")).Insufficient information... and it's time to meet my wife for dinner.

As a out-of-state or even international investor like myself, it's quite traumatic to do due diligence and still find out that .... it's insufficient in the end.

Was it an error on Cozy's part or did the tenant have insufficient funds?

@Stephen E.Here we have security deposits, but they can be no greater than one month's rent, which is typically insufficient to cover anything but the mildest of damage.