If they don't have cash in hand to pay the rent at that moment, I would serve a Notice to Pay Rent or Quit and I would serve a Notice to Enter.As others have said, learn the landlord-tenant laws for your jurisdiction and obtain the services of a qualified attorney.

If you did this and either held it for a year (I️ believe that is the standard, but I️ would confirm with the banking institutions you want to go with), you could then refinance, pay off your land contract and pull cash out if appraisal came back higher.Your original thought process is correct in that a bank wants the 20% (I’ve seen closer to 25-30% on commercial loans until you build relationship) to protect themselves from fluctuations in value, but they also want skin in the game.Good luck,Roger

My question is, is it ok to simply get back to them and say there  are better qualified candidates?

- You can qualify for a bigger loan since the income from the property is considered as income to you.

basically the steps would be1. drive to find a potentially qualified house.2. find out who lives there and what their mailing address is.3. put them into your mailing campaign to start sending them lettersim mainly looking to outsource #2 and #3 and curious as to how you guys do it.  

I'm Mark Baldwin, and have actually been a long time user of the Bigger Pockets message boards, but have never actually made an introduction or post myself. 

This means the employees cannot qualify for loans/mortgages.

If you have a process you want in place, they can get on board, or go somewhere else....most people get on board.  

My fiancé is all on board for starting out in real estate. 

And yay for the wife being on board!