Typically, second mortgage lien holder will foreclosures when the sale proceeds will cover both mortgage debts. 

Then make sure to get a down payment big enough to cover what you think the risk is.Not that I would ever hope someone can't end up buying, but if the lease expires and they cannot buy, position yourself in a good position at the end of the lease.In Wisconsin, I use addendum "O" an early occupancy agreement.

If your total monthly rents $750 x4 = $3000 are 1% of the purchase price then general its a good starting place to evaluate a property so you will cover your costs.

A rude awakening will be upon most when the roommate they sleep with thinks they have community property and are covered.

It's more of an issue for disclosure items like talking about the seller's situation to the buyer or talking about the buyer's situation to the listing agent or the seller.Having the agreement also allows the agent to negotiate on the behalf of the buyer.Also, it protects the agent in situations where a seller or an unethical listing agent tries to cut your agent out of the picture with the promise of a better deal.There are several hours of training on laws of agency.

Keep in mind we do not have known cost amounts for these repair items, and can just make estimates, and hope no other costly issues are uncovered after attacking some of the repairs.My question is, with our next interaction with the selling agent, should we:A) Ask for the major repairs be metB) Ask for a decrease in agreed upon price (without great idea of what the repairs will cost)C) A combination of both; settle with some repairs met, and a decrease in priceOur entire list is below: (keep in mind that I am not sure if all of these things need direct attention to get the unit rent-able, or if some items can be overlooked for now and deal with later as they become more of a problem)Repair List:Items that need attention before renting unit:Big Ticket Items:Install furnaceInstall all new appliancesInstall water heaterExterior electric power supply is damaged, needs repairInstall guttersNo termite treatmentNo gas meter, install newAttic decking has moisture damage, needs repairSmaller Repair Items:Install electric panel faceplate and secure exposed wiresTwo prong outlets (could not test), swap out, install GFCI where neededTrim tree limbs in contact with power linesMissing light cover under front entranceRepair kitchen windowsRepair kitchen sink leakRepair utility room leakInsulate atticSeal gaps in living room doorLoose bathroom faucetAdjust shower water pressurePatchwork performed in multiple rooms, walls are plaster on wood lathe- which I have been told can have asbestos issues once opened upDeferred Cost Items:Large tree removalTorn and missing roof shinglesSeal plumbing boots on roofRaised soffit under car portSecure electrical lines in attic, they run over attic stringers, not through them (necessary?)

I just want to make sure the information sounds legit before I even attempt to move forward with anything given I can only go off of the pictures provided on the listing, which could possibly have been taken from somewhere else?

With minimal expenses, I netted $3500 in cash flow for the year.Investment Strategy: This was an appreciation play, I could cover if it went wrong.

Do please add a picture.

@Chayson DesciscioloYou definitely will want to have an attorney draft up the document - I've seen too many DIY agreements that don't cover the person the way they want or thought they were covered and it ends up costing more in the long run to fix it than to just do it right the first time.