@L'aura BradfordBanks don't like it & further, go out of their way to prevent a buyer to tie up a property & then assign the contract to someone else. 

How could one prevent a stolen deal?

That way they will likely keep the property up and pay, but if they don't they will be reasonable with a plan to move them out to prevent negative history on their background while you can get possession of the property back quickly to re-rent it.

Is there anything preventing me from starting to market the unit for rent while he still lives there?

In return provide them with reliable people in your network so it's win-winTip #5: Get a Google Voice Number - Trust me you need this especially if you are posting ads for RentalTip #6: Preventative maintenance - MustTip #7: Be proactive and not reactive to your tenant's need.

To prevent that from occurring, it has been suggested that maybe we Realtor/Investors should have the sellers sign something that states that they do indeed know that we are going to flip this thing for a profit.

But, don't let you're fear prevent you from learning about other profitable parts of the business.

Make sure you have a preventative maintenance fund- roofs don't last forever!

If a neighbor used your house as an excuse to use mismatched colors, then the HOA's logic would dictate that other neighbors will too - they just want to prevent a trend in the neighborhood so that everyone doesn't start putting mismatched doors on their homes. 

A foreclosure and gut rehab would require that kind of financial muscle, but I don't want to get into that, good contractors are impossible to find.