David on normal transactions yes but when I was buying foreclosures on a Wednesday that were going to sale on a Friday.. only way to do it.. yes risk.. but calculated and I did it for a living and we are well capitalized so If a made a slight boo boo we could live to fight another day..

Realistically, if they walk away from the contract in July/August, you will likely suffer more than one month’s worth of loss because it is much more difficult to find replacements at that point, but at least you have a fighting chance.  

I worked for a large firm in Irvine and then decided to jump into real estate for financial freedom! 

If they don't want to move out you could be in for a long fight (especially living in California).About the only way I'd consider doing this is if I had a relationship with the current owner, including a signed loan authorization statement for the first mortgage.

I live in Irvine and we own several dozen units in Salem.

I don't think they like it when I say this, but you want hte insurance company to fight the lawsuit since they don't want to pay out and you don't want to go broke to defending your LLC. 

I'll second what Brady said, challenge the appraisal (get a different one), and/or renegotiate the offer. 10k is a lot of walk away from, I'd fight a little before simply walking.I'm just over in Bluffdale.

But moving forward I need to make sure my personality and expectations will match with anyone I hire so that we can be an actual team and not waste time fighting which takes away from the project completion.

If you want I can send you some picks of unit I just rented that I had to fight to get listed as good and not average.

If your tenants keep 5-10 incandescent bulbs or halogens on when they're home, it can be like having a small space heater fighting your AC.