If my post and/or responses gave you a certain unfavorable perception of me.....well, that's unfortunate.

However, the contract process seems very unfavorable to the buyer.

You alluded to him having an unusual tax filing situation and an unfavorable debt ratio...

You don't know what you don't know and can sign contracts which opens you to risk or are unfavorable.

But each investor must choose their own approach and live with the favorable or unfavorable consequences.

This combined with the reported failure to maintain the lawn = unfavorable landlord reference. 

Are squatter laws and insurance laws unfavorable to land owners in the area?

My state only charges $60ish per year for renewal.In addition to hassles and unfavorable financing options, an LLC will cost ya like $800/yr as a CA resident.  

Problem is if you the market conditions do not allow for your original exit timeline and you can't wait and are forced to exit at unfavorable conditions.

It cost a $50-75 but well worth the headache avoidance if I mess it up myself.That said, if you don't like the tenant you can offer a rent increase or other unfavorable terms and hope they don't renew.