Both got me the property two or so weeks earlier and I think (impossible to prove) it helped mitigate damages to the property as they were on their way out.

@Trevor K. working on contingency would mitigate the risk for the investor.

You work with title officer, attorney or other representative to eliminate those exceptions (conditions) by providing other documents to either satisfy or mitigate their risk (perceived or real, IMHO).

By the time you do all the stuff I would do on this deal to mitigate risk, you've spent significant money, which is not part of the wholesaling lifestyle.

If you really want to know what's coming down the pipeline, check staffing levels and hiring activity for loan servicers, foreclosure companies (trustees and attorneys) and bank loss mitigation departments.Believe me when I tell you that they are far from the last to know what's around the corner, especially in a given market.

My only concern is if you have a vacancy in a single family and it's your only property, you have 100% vacancy ie. no rent coming in that month (or two or three depending on the rental market), whereas with multifamily that risk is mitigated across all units. 

If so, how do I mitigate my risk with the loan?

If the house is built by Lennar, they may be able to help mitigate the cost.

Did your contract have an "out" that most people could use to mitigate that issue?

You can also have higher cash reserves which helps mitigate your risk.