The market I'm in is dry ( Wilmington , NC ) and I'm not a big fan of residential single family or condos  .

There is also a savings of $2k from not paying the $50.67 per month excess from the 42 months cut off the mortgage.

Guessing his pipeline has dried to zilch as rates have gone up (industry volume is down 40% or so, multiple rounds of layoffs have already occurred), and he's throwing spaghetti at the wall.

I've been trying to cross my t's and dot my i's as much as possible before purchasing my first deal but once we see a downturn I believe my excessive due diligence will serve me well

That aside, if your partners can demonstrate in court your pricing was excessive that could be an issue for you.

Still in excess of my mortgage.

(losses from real estate business in excess of other income including W-2)The only reason I asked if you are getting in the business of making money through commissions is because some get the license just to look at properties on the MLS with no intent of really making money.

If it is more than a few hundred dollars, divide the excess in half and ask if they are willing and able to pay you this amount extra every month until they are caught up AND keep all future rent current.  

Site grading is beginning this week with the dry weather.

Any excess in this account is used to purchase additional properties.