She has two small dogs and pays $10 extra per month per dog for them as per the lease with the previous landlord (we bought the house in April).

However once that income is gone investment earnings will matter the most.

My ultimate goal is for passive income earned with these properties to cover my current living expenses (and hopefully more).

Make the end buyer feel as though if he screws you over, he may make an extra $20k but he'll lose ALOT more because 1) the pipeline of great deals you were going to plug him into just closed and 2) you know enough serious wholesalers out there that once he rips you off, all other wholesalers will know he's a crook as well.Again it's more of an 'attitude' than it is a 'legal' thing.

But, make sure you qualify for the conventional financing first, and have the extra money to do the repairs.

Usually the resort rental units are sold as furnished, so you get furniture from the get go, but sometimes the sellers take some prize pieces such as art work, vases, etc, so you may get the furniture but not some of the extras.

You need an understanding RE broker.c) Doing a lease option sandwich, staying in the middle, you can earn 3 paydays: option fee spread, rent spread and exercise price spread.d) I find if you market to sellers without agents, as in expired listings, cancelled listings, DIY landlords, and even wholesalers giving you "no equity leads" in exchange for a possible commission for the lead, these are best. 

I don't mind spending the extra money if it's worth it in the long run.Thanks in advance.

You may find you get a little lower quality tenant, but the extra income is great.

But, as you can see, that extra $4k from the extra 12% will give me peace of mind/safety from this.