Mitigate your risk by requiring a higher security deposit.

I'd designate the strongest applicant as the primary tenant, in charge of deciding who stays and goes, and make it clear that a deposit is not refunded unless everyone moves out.  

@Riley Kuranishi I am not an attorney, but I would guess that you could not charge him a pet deposit, nor ask for additional monies or paperwork for a service animal.

Our contract was very basic, simply statement of their labor rates and that they would hold a materials deposit, plus my addendum stating all the work that needed to be performed, but no phases.

But if I were you instead of trying to "go it alone" in any part of REI if you are new, find an REI club like @Nathan suggested and find someone to Mentor youe en if you arrange a small fee for a regular time slot to watch them work, an agent, an investor, whoever -- any successful person who's done successful deals and can train you how to think/look, how to select which *type* of REI might be right for you even.

When I held everyone jointly and severally liable for not reporting a significant water leak under the kitchen sink, they caused a stink but ultimately paid a portion.You'll also have tenants moving out when others stay, so you're trying to decide whether to take from one security deposit now and one later for common area damage.

@Kyle Rountree When you talk about "prorated rents" are you talking about security deposits or simply just prepaid rent for upcoming months.

She would of course forfeit her security deposit.2) Attempt to enforce my lease policies.

$62,000 $95,100 08/28/92 2 3 1,468 1,468 1984 0.0 1204 OLD HAMMOND CHASE $122,000 $88,000 08/31/16 3 2 1,397 1,398 1984 0.00 1705 HUNTINGDON CHASE $122,500 $93,800 11/04/16 2 3 1,456 1,455 1984 0.00 2305 HUNTINGDON CHASE $112,000 $84,400 08/17/16 2 2 1,273 1,272 1984 0.00 2106 HUNTINGDON CHASE $119,500 $93,800 08/31/16 2 3 1,456 1,455 1984 0.00 937 DELARONDE CT $355,000 $268,400 09/30/16 3 4 1,460 732 2008 0.25 750 DALRYMPLE RD L2 $140,000 $75,500 06/03/16 2 2 1,526 1,525 1967 0.50 750 DALRYMPLE RD D1 $169,500 $77,300 07/07/16 2 2 1,526 1,812 1967 0.57 6 WESTFAIR CT $277,000 $233,700 04/12/16 3 3 1,630 1,629 1986 0.59 7750 ROSWELL RD 7C $110,000 $97,600 12/20/16 2 2 1,350 1,350 1980 0.62 7750 ROSWELL RD 5C $50,000 $97,600 09/14/16 2 2 1,350 1,350 1980 0.62 7750 ROSWELL RD 6D $122,000 $122,000 12/11/15 3 3 1,470 1,468 1980 0.62 7750 ROSWELL RD 4A $148,000 $104,900 09/26/16 3 3 1,470 1,468 1980 0.62 7750 ROSWELL RD 10A $106,800 $97,600 10/28/16 2 2 1,350 1,350 1980 0.62 7750 ROSWELL RD 10G $115,000 $74,350 04/27/16 2 2 1,350 1,350 1980 0.62 1001 BRIGHTON PT $172,000 $149,000 04/29/16 3 3 1,600 1,612 1978 0.65 The earnest money deposit will be $500 but I have a two day window before putting it in escrow.Does this property even make sense as a fix & flip/Buy & Hold/ or BRRRR?

So when you are ready to buy another property just deposit the money into your business account and that counts as new investment capital.