The property may not have any vacancies, but if it does, just make sure you have enough reserves to cover that. 

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

Talk to your insurance agent and be sure you're covered.

I get an insurance policy for each guest so if they break anything, I feel covered.  

Now the deposit covers up front costs , some materials , overhead and PROFIT .

In this market i would only go that route if you have the resources to cover their initial investment so there would be no loss of capital if things go bad.One of the syndications that i am an LP buys MF, rehabs the existing units, converts tbe garages into max number of studios, brings all units to top of market rent, and exits with max NOI.  

Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is expected to be higher, you may consider an umbrella insurance policy.

He doesn't cover how you pay off the loan if you over paid by buying off the MLS, which is where he is teaching people to buy properties.

The scope of what you asked covers a broad area from estate planning, to tax planning and forward. 

Ensure the rents and expenses support the debt service and provide solid cash flow after covering the assumable loan, seller carry payments, and operating costs.Occupancy & Rent Roll: What’s the current occupancy rate?