You can do a Standard (aka "Full") 203K on a property BEFORE it meets minimum standards, provided part of the repairs is to eliminate "health and safety hazards that would violate HUD's Minimum Property Requirements (MPR)" 

Preferably you build in a margin of safety so that it is cash flowing at at least 8% or so after all expenses, reserves, etc.  

As long as you are aware of what keeping the truck will potentially cost you in the long run (from an investment perspective), it's up to you what you want to prioritize. 

As long as they have made a habit of prioritizing paying their rent, then we feel our risk is low.

It's not that expensive and it offers a good safety net.

The power in no leverage is safety from the financial obligation of debt.

I have a pretty comfortable safety blanket invested in liquid funds that I can get to easily.

It is standard close-out procedure that you collect all original documents like inspection cards, that are signed Final, approved drawings by building and safety and planning dept, and other pertinent documentation along with conditional lien waivers upon final payment and unconditional lien waivers on progress payments before you cut the paycheck.

The more I think about this, the more I am trying to figure out the best way to make sure my strategies allow for me to maximize my returns and, more importantly, reinvest them to build as quickly as I can (with some safety built in, of course).

Also, I am stashing away $4,000 in savings each month in preparation for opportunities and safety at the moment.