If you will allow pets, don't waste money on carpet.  

Make sure they do annual (if not bi-annual) property walk through (this is a great way to find out if tenants are smoking in the house or sneaking in pets).  

(Basically means my worst case is $30k per year of health costs.)

Given what I know about the health industry, I wasn’t really going to hold that against them.

I hold the Note(s) on both & having exercised the signed assignment of rents I 'reluctantly' manage the properties.We collect the rents ($2300) & the 'income' is used for maint/repairs, tax etc escrow & anything left is used to pay down their mortgage(s).Several weeks ago I received an inquiry from Social Services to pre-qualify this couple & kids for 'free' Health care.

You'd really have to look into what else is going on with the "health" of the HOA and what the future repairs and issues look like. 

Maybe they're niche is renting to people with pets and you don't accept pets, or whatever other kind of variation you can come up with.

I am also very good at managing money (current CFO for Santa Barbara County's Mental Health Department where I manage a $106 million annual budget). 

We will come to agreement, or I will try my second buyer, or use the Inspection Clause to back out of the deal without losing my EMD.Yes, I will use a lawyer to review State Regs and ensure that my offer does not break any laws and protects me in case of a hurricane or health problems of the seller or me.Any other exit strategies that will not be offensive to the seller here, that I could use?

Catch the unauthorized smoking, unauthorized pets, unauthorized occupants before they cause significant damage to your property.Pavement Oil Stain - charge for it.Bedroom Blind Rod Missing - charge for it.Gate and Epoxy.