I know there are some people out there who do this and put an assignment in place to be recorded if the loan defaults.As with so many things in REI, there are multiple ways to skin the cat, and it has a lot to do with your level of risk and your partial investor's level of risk.I do teach a 4 hour live class on this. 

Hi Nathan,Thanks for the reply and insight that it might be normal what they are telling me. 

So I require skin in the game (average is 5% to 15%) to offset this.

This is a vacation spot that I normally visit several times a year and the short term rental income will help offset the costs. 

First thought was the two girls went downstairs to get into their Santa presents and could not find normal music that late at night. 

Just get a security deposit that you hold in escrow from the seller’s net proceeds (as high as you can negotiate or is legally allowable in your area, in my area the most you can do is 1 months rent) and have the sellers sign a lease/ post closing occupancy agreement like a normal tenant.

The General contractor must spend a certain amount of hours each week on each project that he is being an RMO for, and has liability for any construction errors or defects, even though he actually does not have as much control as he normally would. it's really a niche for older retired contractors, it would just be an overwhelming amount of work and potential liability for a younger GC.

You could argue tenant never made you aware of the leak so it’s on them but normally that doesn’t get you anywhere.

There are a few dozen houses with my target number of beds/baths/sqft that have been listed for rent on Zillow for 2+ months with 0 applicants.Is this normal or is it a sign that's there's not enough demand for rentals?

Normally you need to find a bread and butter B class neighborhood to make money in real estate.