Failed to collect Property Insurance and Property Tax on my promissory Note now buyer refusing to pay $15,000 delinquency on mortgage that is $709 per month @ 4% with $93,000 balance now pending foreclosure. 

You are right about the issue with insurance.

Sure, just have them sign a contractor agreement stating they have these things, insurance, etc. 

No lender will lend and no title insurer will insure a transaction in tax sale or following a tax sale unless the tax/lien is paid.IRS and state tax liens are another matter... so let us know what you've got.

As far as the tenants, do they have renters insurance?

We are currently rebuilding one property from a fire, so that kitchen is being covered by insurance, but it's been a good learning opportunity for us, and pricing on the same kitchen has ranged from $8,500 to $15,000 at a box store.We have two other properties that we are renovating and upgrading right now, both will require new kitchens and baths.

@Syed NaqviMake sure they have liability insurance and a license. 

Have you factored in holding costs (insurance, utilities, taxes) and selling costs (commission, tax/deed fees, etc)?

Here are my numbers:$62,500 mortgage $540/month for mortgage payment, taxes, and insurance ($6,480/yr)$675/rent ($7,425/yr at 90% occupancy)$80 cash flowMy overall goal is for retirement so I am happy with covering all expenses and not taking any money out for myself. 

Property 1 cash flows $230/mo or $2,760/yr. per side. if you paid it off it cash flows $450/mo per side (after taxes and insurance) or $5,400/yr.