I wont be in the negative but I appreciate the concern.

I'm concerned about having my cash "trapped" in the rehab for too long though?

By letting both parties know where I stand in the deal I should be avoiding any hard feelings between me and the other parties (or causing hard feelings) and avoiding any legal disputes, which could jeopardize my business.

We combined have good incomes but I'm concerned my LLCs will make them think we're too risky (I own 33-55% of four houses and my own house with a renter in my home, all are doing well financially but I ran into this problem of really having to search with getting my own mortgage because they looked at only my percentage of income but all the debt as risk). 

My concerns are: If I buy a place with the intent of renting, are the interest rates and down payments high on home loans?

The reason I'm looking at it is cause it seems like a nice property compared to what I can get when renting.

People are so quick to say "slumlord" when they see bad conditions like this... but the truth is, sometimes people are just gross and messy and cause the issue! 

If your concern is cash flow only, I'd do it for sure and have thought of doing it myself.

In addition to screwing up your credit and causing a lot of sleepless night. 

my concern is that if they leave in the winter i could be 2-3 months without a new tenant.