Make them pay the full deposit and first month's rent (proves they can afford it) then give them the reduction the second month.4.

Does this mean, I am not able to refinance to a lower rate in the future until 5 years or I would have to pay a penalty if I were to do it earlier than 5 years.Thank You,

The seller benefits from the spread between the interest rates of the old and new loans.Agreement: Ensure a clear agreement on who will be responsible for the existing mortgage payments and how any arrears or defaults will be handled.Seller Second Mortgage:Structure: The buyer gets a new first mortgage to pay off the existing loan and a second mortgage held by the seller for the remaining balance.Consideration: This may require refinancing the existing loan, which can be costly and may change the loan terms.I hope this helped.

Is there a fine they pay or does it say nothing?

B) Hold the lots, pay the taxes each year and just sit tight to see where things go, hoping in a few years demand will pick back up and then either sell the lots or build. 

How do I prevent someone from staying past their stay without pay?

I would grab anyone who will do it for you and I would expect you will pay 15 to 20% apr for those type of loans given the risk profile.. has nothing to do with you personally as a qualified borrower but for a PML if something went wrong and they are sitting behind 3 to 15k mil in senior debt most could not pay off the first to protect themselves. 

I actually just did a dscr loan to pay off the hard money I borrowed on the second property (where we live and rent the actual house) I estimate the appraisal to come in around $215-280K which if I were to take out 80% would barley give me enough to buy anything in the FL market and have cash left over for renovations.Not sure if im missing a step here or if it might be best to buy an auction home with that cash to flip and have more capital to have more deal options. 

When vetting a potential dev. deal investment, pay close attention to the developers experience in the market and the number of deals they've successfully exited. 

You pay a premium for quality properties, because they are low risk.