Forgetting about what the law says it's the mark of an inexperienced landlord to accept less than the agreed amount and it's sets a terrible precedent. 

In the lease agreement he waived his right and agreed I can end the lease agreement. 

Agree with @Thomas S. and @Joe Villeneuve :  Extracting the equity to redeploy into either a new asset class or a diversifying RE income stream would mitigate the risk of that equity evaporating due to market conditions. 

(although I agree Rentometer is probably fine for reality purposes)

He agreed to the two year contract.

I'm on the Tennessee side of the NC border and totally agree with you - still lots of opportunities in some of these southeast US markets. 

Use an estoppel certificate to ensure all parties agree on the lease terms, rent rate, deposit, etc.

I agree about taking out as much as I can get.

Do you agree with George about not telling them it is an investment property?

@susan @Susan Little I agree about staying away from foreclosures as they can hide some nasty surprises from costly unexpected repairs to undisclosed liens.