For may part, I am not going to charge a late fee, but make it clear to the tenants that eventually the rent will need paid, just as my owners have a mortgage to pay.  

Perhaps a nice 1950's built bungalow.Always hire a 3rd party property inspector to give you an unbiased feel for the home.

Both parties agree on condition up front, and both agree on condition at end, you are less likely to get pushback if you withhold all or part of the deposit.In your situation, no deposit does not technically mean no liability for damages, but obviously harder to assess, particularly if you don't have any type of documentation of the condition before tenant moved in. 

Just keep the deal together and close as soon as it’s possible, neither party should have a problem with that given the situation.Best of luck! 

Clearly a quandary for which there aren't a lot of viable solutions.Several steps can be taken to help create an acceptable situation for both parties.

A system may not be fair for all parties equally, but it still could be the best overall solution. 

I also remain as a consultant through the transaction to ensure both parties make progress. 

A local real estate agent or an appraiser would be more qualified parties to help though.

All parties need to agree otherwise it's not going to work.

Loan Information· Loan AmountLoan amount ranges from $20,000.00 to $5,000,000.00 otherwise agreed by both parties· Loan durationLoan duration ranges from 6 months to 20 years at maximum and additional 5 years only on mutual agreement between both parties.· Loan ProcessIt takes the interval of 1 to 7 working days or less from application to funding.· Interest RateInterest rate shall be 5% irrespective of the loan amount or the nature of the investment..