If he cant make them then I get the house back. win win win for Jim then Jim turns around and sells it to the next person who wants to owner finance it but this time Jim is more savvy and says Im going to ask for more skin in the game so I dont have to go thru this whole thing again and he gets $10k down and sells it for a higher price like $50k since property values have increased and he had to spend a little to clean it up and paint it etc.

Most HML's will require borrower to have some investment funds (ie  skin in the game). 

I have skin in the game to keep costs in check and deliver a finished product that will sell for top dollar.Anyone have comments on this or similar arrangements??  

Competition is healthy!  

If this type of tighter controls and underwriting standards increases, what I envision happening is that those sites that are offering predominantly equity deals - those where the Sponsor has little to no skin in the game; comps aren't backed by independent appraisals; loan commitments not procured prior to raising equity capital leading to large gaps between when Investor funds are committed until they start earning; etc, etc. - will have to start offering increasing higher (i.e. riskier) returns to compete.  

The property will still have a healthy cash flow, but not as good as I'd hoped. 

Apartment buildings in many areas of North America are over priced at the moment ... so carry with you a healthy determination to stick with your {conservative} numbers and let the foolish money do as it may.

This way you are having them but skin in the game.

From what you stated above, sounds like you can get a healthy return doing flips.

Is $1,500 worth reducing the agents skin in the game and therefore willingness to help you on this and future deals.