You will need to have some skin in the game as far as down payments some lenders will fund from 65% all the way to 100% after you have proven you know what you are doing.

You seem conflicted on how you are going to treat your tenants .On the one hand you want to be a nice guy and let them change terms of agreements on the other hand you want to take their security deposits I suggest you treat you rentals as a business cut and dry you can be fair and honest with people with out ripping them off or shortchanging yourself.READ over your leases and the state laws If your are honest and firm with your tenants you will sleep better at night. 

He said that some agents ask for up to a 14% commission to get skin in the game. 

The takeaway: I got out by the skin of my teeth.

Depressing to hear that the money has really dried up big time for REI but also interesting.

This way you can add value and quickly refinance the property.Another piece that can come in to bite you is that most lenders will require skin in the game on a purchase. 

Maybe you could shadow someone with skin in the game.

Original owner was getting sick and let the property deteriorate)...Ideally I would like to open the walls, too and dry-wall from scratch - there is the old house smell and most importantly I would like to make sure whats behind the walls looks kosher.And I would also need to fill the in-ground pool cause its deteriorated to the point of no return.Any ideas as to how quickly rough-estimate this rehab?

Sounds good in theory.A lender will look at the interest held, 49% and the debt against that as well as the purchase of the 51%, they may or may not recognize the skin in the game after one year that is claimed to have been circumvented by the paperwork shuffle.

There are some lenders that may give you trouble as they may want you to have some of your own money in the deal "skin in the game".