So, essentially, your ROI is about 9%...technically a tiny bit less as you fronted $5000 for some period of time that you got no incremental return on.And if the buyer pays off the loan early and there is no prepayment penalty, you'll actually make less than 9%...especially if he pays it off very quickly...I'm curious why you're not lending out the money instead...should be much easier to earn more than 9% that way.

There was a tiny clause on the financing that he can't rent until 1 yr after.

I've yet to find one who had any depth of knowledge on building codes beyond the extremely obvious, could spot building violations beyond something extremely glaringly obvious and none of them have x-ray vision.Jetted tubs with no access to pumps, lack of required dedicated electrical circuits, missing outlets, dangerous electrical issues such as lighting in wet areas, wire nutted connections  together and buried in a wall, miss-wired electrical panels, extension cords used for wiring buried in walls, bathroom exhaust fans that aren't vented anywhere... that's just a tiny list in one small category that are witnessed over and over again in flips that had home inspectors involved in the sale. 

But I guess there's a tiny chance 3 years can pass and then we'd have the opportunity to file an action to get the title (though from reading up on it, that could be a long, difficult process).1) Civicsource says we don't need to contact the current owners, but should we write them letters anyway?

It's not used on SFHs even though the standard form includes a tiny section on it (and if used, there should be an additional page attached with more data than the form allows for).  

A "tiny" 2% management fee can reduce your yield by over 60% over a 50 year period.

There are tiny pockets where finding cashflow properties is still somewhat of a thing.  

If you learn to make it in this business by using none or a tiny fraction of the money you have, you will not only learn the best strategy for it, but you will also not put it at risk.  

This morning I saw a TINY mouse jump from the top of my kids closet to the floor over baskets and into the hallway!!!!

It also allows me as a landlord to have my tenants pay down the cost of the property.A house in my city that costs $20,000 is a tiny crack house that is falling apart and in the middle of the "hood".