What are the requirements for the vetting process? 

It is really difficult to get a good deal from a bank, unless you buy with cash, in a quick transaction, don't require an inspection and buy in bulk.

He seems to suggest starting with a property that requires light to moderate repairs, reducing the risk associated with the investment.

It is a difficult balance to be considerate of tenants but you have to be considerate of your bank account.

All windows are required to operate per the building code.  

Any delinquent loans are “put” back on the seller.From the seller’s perspective, it requires managing the complexity and liquidity requirements of outstanding options.To compensate for the transference of risk, notes with put options trade at a lower yield.- Sellers receive payment for the loan and a premium for the option.- Buyers earn a reduced yield but hold a valuable option.Much in the same way that equity yields are reduced in up markets when bought with put options.How often do you buy/sell debt with put options?

They tend to have higher DSCR ratio requirements than individualizing the properties.  

Next, you could use rental tracking software, but really, 3 people are paying you monthly (plus what you pay every month); software might not be required at this point.

Do not be scared to politely but firmly renegotiate with these established guests to terms that fit your business plan: raise price to where you cover expenses and require that they either rent from Dec 1 or from Jan 2.

But they require following a lot of corporate formalities, and funding the LLC with $50,000. $800 a year in franchise tax fees is my no means sufficient to buy liability protection from a determined litigant.4) Would you hire an environmental testing company to test the land (to which you have no legal access - but I doubt the dead guy would call the cops on you) once the foreclosure process has progressed well enough, but before it's conclusion, so that you tell the lawyer to stop foreclosure in case some major contamination is discovered?