They have my sympathies - not my judgement, admonishment and Monday morning QB'ing.  

@Cesar PeriniI have two friends 2 different philosophies I listen and make my own judgement.

Try to split it into two payments (half to move in).Yep, they either overspent and can't do 5th grade math so had too many bounced checks or they have judgements against them and money in the bank will be scarfed. 

But each state and city has different tenant rights and rules, so you have to follow those first, if they are fairly loose rules then it is your personal judgement.

He is afraid of pending judgements, Liens and possible litigation.

Not making judgements here, but its good to know your market.

So much can happen based on the appraiser's judgement, that are out of your control, you should be prepared to leave money in the deal just in case, and the rehab may also go far over budget,  I highly recommend if you haven't read it already David Green's BRRRR book at least on the negotiating with contractors side. 

I feel like a $900 unit with a $75 flat fee for water will sometimes look better in an ad than a $975 unit with "free" water but that is just a judgement call on my part.For water I think the flat fee method works ok, because there is really not that much incentive to use up a ton of "free" water unless they are irrigating the lawn a ton.

As long as your lease terms are clear, you shouldn't have a problem getting the judgement in rent court.  

Roughly 4 dozen volunteer surrenders, a handful of judgements. 0 uncollected rents/funds.