You'll need to enforce late fees to encourage on time payments though and not allow them to fall so far behind like the previous owner. 

It states that he can break the lease at any time under these conditions… 1.He forfeits all deposits2.He must pay for all costs to lease the property to a new tenant (i.e. posting fees, rental signs, etc.)3.He must pay full rent until its leased again4.He must pay ½ months rent in an early termination fee.If it comes up again I intend to offer that to him as an alternative.There are about 9 months left on the lease, not sure why he would want to lose the entire deposit to go to another location an pay a new deposit and a pet deposit.

Basically I just want to be the investor, pay a small fee for it to be managed but in the event the borrower happens to foreclose then the property would still go to me because I’m the investor?

I'm guessing that perhaps you owe the property management company a fee, and that fee could come out of the 1st month's rent?   

If I were to flip this house I estimate I would clear $15K (after RE fees & capital gains tax) which would give me plenty of funds to purchase a newer vehicle.

We have also had issues where the occupant filed for BK and they were able to stay for 1 year and it cost us 10k in attorney fees to get them out.

I'm wondering the best way to handle applications and collection of application fees, as well as selecting the most qualified tenant.

However, different lenders may have tighter restrictions (overlays) and different loan processing fees.  

The builder told him that if he uses the builder's realtor, then the realtor would take a flat fee of $2000, the rest would go back to John towards his closing costs. 

@Julia Vang Hart Make you to get several bid proposals and consider elements such as: inspections, how late fees are split, vendor mark-ups, and lease renewals.If you need help, please let me know.