You don't have the authority to indemnify others and have it covered by your insurance without the express written permission of your insurance carrier.

Having an owner express concern over a clearly unilateral contract is not "Fantasy Island", and dismissive comments like these continue to reinforce the aforementioned stereotype.I get that the PM business has low margin, but pocketing this fee and others (such as lease up) that are "industry standard" (@James Wise) create interests that are diametrically opposed to those of the owner. 

For those tenants that don't have a bank account or CC to pay, we have systems setup where they can pay at a CVS or Ace Cash Express (or 711). 

Some of them have expressed a desire to use all our cash to do the first deal, but I'm wondering if we might be better served by taking out a loan. 

With that being said, I express my idea that REO tapes are being bought and sold all day long, and no one can deny that.

A Letter of Intent (LOI)  is basically a personable letter expressing your sincere interest in purchasing something.  

I was reading Fed minutes over the weekend where it expressed concern that RE price went up too much too quickly, particularly MFH, to the extend that it could cause financial instability.....I have noticed, for a while, that MFH have been going up faster than SFH in a couple of markets that I have been watching.... and thought I must be wrong because that just did not make sense....Well, apparently, I was not the only one noticing it...Take caution if you are still buying MFH

Your time here will be well spent.Since you expressed a leaning interest in buy and hold as well as flips, I added the below links for your review.http://www.biggerpockets.com/renewsblog/2013/01/04/how-to-rent-your-house/ (house rental guide)http://www.biggerpockets.com/renewsblog/2013/02/22/buying-rental-property/ (how to buy a rental property) http://www.biggerpockets.com/renewsblog/2014/01/07/flipping-houses/ (step by step guide to flips)Now that you have made the move, below are some links that will help with the navigation of the site. http://www.biggerpockets.com/startherehttp://www.biggerpockets.com/meethttps://www.biggerpockets.com/alertsHow to Use @Mentions on BiggerPocketshttps://www.biggerpockets.com/ruleshttps://www.biggerpockets.com/inviteshttps://www.biggerpockets.com/forums/categorieshttps://www.udemy.com/biggerpockets-real-estate-investing-course/ (video with 64 lectures and approx 6hrs of material)https://www.biggerpockets.com/real-estate-investing (Ultimate beginner's guide to REI)Before your 1st purchase, please ensure you visit the below link for some tips.https://www.biggerpockets.com/renewsblog/2014/12/19/real-estate-investing-success-smart-tips/REI books suggested by BPershttps://www.biggerpockets.com/renewsblog/2015/11/13/7-real-estate-books-beginner-investors/ (7 absolute must read books for beginner REIs)http://www.biggerpockets.com/renewsblog/2013/04/14/best-real-estate-books/?

Meeting of the minds sometimes can be expressed by words spoken or gestures made or can be inferred from the surrounding circumstances.

This is not a financeable property, banks have standards for condition and financial stability.My point is that if it was as easy as you've expressed (20% down payment, 5.5% borrowing rate, 15% net return, 45-50% ROI !!!)