This also leads owners to ASSUME simpler is better when it comes to management contracts.

Most wholesalers are not good at what they do, are unlicensed (which is illegal in most states), and lock up the property in a contract with zero risk to the wholesaler.

After discussing their goals, we realized they would like to maximize the property's value while also including me in the process, given my background in general contracting.

okay @Brandon Battle Could I just add it to the contract as a contingency clause to get permits for basement bathroom?

You can't resolve the issue unless you pay off the loan, the bank sends the property into foreclosure and your original seller sues you for breach of contract and ruining his credit. 

That process has direct lender involvement.Where the challenge lies, is when unsophisticated "investors" with no experience, no money and no reserves use creative financing (often called wrap, subto, lease option, seller financing, land contract) to purchase properties and along the way there is a "hiccup".

Went under contract on the first!

It does not take that many hours to look at a property, sign a contract or even manage tenants.If you are bored in your 9-5 it's time to move on to a job where you learn and get challenged so you can grow.

@Robert Quiroz I think all of the factors you have listed might contribute.So I’m not going to comment on that but I am going to comment on an assumption you made.If 85% of rents are below market on deals you underwrite then those contract rents are probably THE market rent.You can’t just go based upon area median income to rent ratio.First off urban areas are oftentimes street by street, block by block.

And in that case, you would still need to sue but then you can only sue for the unpaid balance of the agreement and you will have to attempt to locate the debtor.I would make sure you have a clause in the contract that states that if they don't make the repayments as per the agreement, that attorney's fees, late fees, interest and some other penalties are payable.