Present an Offer to Lease with your terms and conditions for the applicant to become a tenant (sign lease, pay move-in monies) by a date certain prior to 8/1. 

It seems a little messy splitting equity and the cash-out refi check, as opposed to a flip where you just split the profits and walk away.

@Jonathan Greene offered great suggestions on saving for your next deal and being careful about partnerships. 

3) What if one of the applicants applied very late but offered 200 or 300 dollars more monthly for rent and requested that his application be approved?

This would be a basic package with available options offered to each participating home owner..

I did a few and someone turned me in :) and sure enough I got a cease and desist and had to pay a fine and spend 20k creating what State of Oregon  calls a Real Estate paper offering !!.  

If you can provide us with specifics, we can offer some advice.

One day miraculously an offer of his was accepted.  

We loved the neighborhood so my wife walked down the street to the house for rent knocked on the door and told them we would buy the house.

Currently, we have them in a money market savings account, but I believe there are better options out there that offer higher returns while still being liquid and low-risk.I'd love to hear from other operators:Where do you park your reserve funds?