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They go with family #1 and family #2 finds out what happens because the seller Realtor is new to the game or does not care about rules.

What is the end game?

It is purely a numbers game for them and they want to make sure they have a qualified buyer. 

The you're in the game... use your skills to increase the value, then refi or sell.

In many cases its a big game of fees and parting you from your money.

But alas not anymore at least PDX .. ultra liberal has ruined that city for the short term.. still made a lot of folks money in the real estate game though..

Even before the covid moratorium, they could live there for up to a year without paying anything until the city finally sends the Marshall to kick them out, provided you took immediate proper legal action (and they know how to play the game).

I would only enter into a permanent partnership agreement if you found an experienced investor who brings more to the table than money and has capital (skin) in the game. 

All day.With all due respect, if you're concerned about $50, this may not be your game, sir....