So just be prepared for that and ready so you do not waste your time, an agent's, or a wholesaler's.

The deal obviously still needs to make sense from a numbers perspective, so just be personable and honest and prepared, with all of the comps and how you came up with the rehab numbers, etc.

Isn’t the ownership of your home worth the $50-150 an attorney would charge to prepare that instrument?

I suggest you get out of that mind set as to how to finagle a deal and be prepared to back up what you say you'll do and carry through with the offers you make. :) 

@Jim Dunn   correct if at the time you do a deed in Lui or short sale your technically insolvent there is an IRS form you or your accountant prepares to file that will stop the 1099C

I hope I never have to use it but am prepared if I have to. 

Things that will cost you extra are screening reports (all companies charge extra for these), a small fee to establish electronic bank transfers (if this is something you will need at all), letter mailings, and 1099-MISC tax form preparation. 

Prepare a landlord-tenant talk to communicate expectations from either parties.

Be prepared to walk away...no matter how far you've gone into it, or how much time you've spent.  

Not just a little mold on drywall, but usually I see these with a major remediation project so be prepared to gut it and possibly have the mold professionally removed.