Hi all,Multi-part question here, feel free to answer any or all parts.

Was he reluctant or all for it?

If one or all inherited tenants are on M2M, which is preferred, you will be in a much stronger position.

You cannot really modify a contract orally, but you agreed to a one time waiver.  

Then, they finally call you because there are no more reserves left in your account, because they spent it all on "emergencies" that they didn't need to call you about because they were emergencies or all under $250 or whatever.And, you will have to manage the manager anyway, if you are smart.So, 1) manage it yourself.  

They rely on security deposit paying for in part or all damages and just think that the borderline DTI and all encompassing information about the tenant suffices what "they" think is a good tenant.

It's slower because you have to wait until the notice expires before filing to evict, which is 30 days (oral leases) or one month (written leases) in most jurisdictions.  

call hud and make sure that make up an agreement about if any thing does happen hes on that fine line about having to leave or all

First of all, you should be getting an estoppel certificate, signed by seller and tenant, that outlines current rent, current deposit (even if its $0), and any current outstanding oral agreements.

Oh, and say no to paying all up front - could establish a longer-term contract, or all cash - you only want people renting from you who are the type to have a bank account.Anyway, if I scared you...well, maybe that's good haha.