Like @Andrew B. said, it doesn't need to be in the contract for him to be able to put a lien on your property. 

You could try to sue the tenant, but good luck collecting - especially in your example if the tenant moved back out of the country.In Scenario B, you had collected a $2,000 security deposit and no extra rent. 

The B in BRRRRR is "buy low". 

CJ its the fact I have the old renters living there .I don't want to risk exposing them .I have pictures on file its a Ato B area should rent quick knock on wood .

If you don't have the Capital for a B class and you want to jump in, you may have to jump into a higher risk environment. 

@Joel B.

What the pair have in common is a) they didn't drop rates during refi mania a month ago (ergo no need to jack them up or add a bunch of overlays today) and b) they are small under the radar lenders. 

Might want to stay away from A class though as the demand for those may drop with people cutting back, but B-C areas all day. 

@Allison Winston you would use the HML for the B, buy, and the R, rehab.

The REO title companies often don’t search for “unrecorded” liens (code violations, utilities, etc) and they exclude these in the B Exceptions.