Made a quick $5,000 with the down payment and have been getting a pretty steady income for the past 6 months. 

Maybe check in a month for progress?

Given that there have already been a few surprises with this property and I'm not sure how confident I can be at this point that the deal will progress to closing, what's the best way to minimize both mine and the Seller's out of pocket exposure in the event the deal falls through quickly?

I look for tenants that make 3 to 3 1/2 times the rent, steady employment for the past 2 years, and no judgements or evictions.

I'm not from the area, but first off, congrats on your great progress!!!

Submit the offer and update you daily on the progress of that offer. 

@John Paul Whaley the East side, depends on what neighborhood you're in, North side if you're closer to the university area, you're more likely to find a steady stream of tenants (college kids).

Keeps turnover down, your number one risk in the remaining high yield properties today.Of course, if you're not set on being a rental property investor these criteria change- but having fewer things to FOCUS on in your analysis will allow you to make progress where it matters & reach the point of initiative more quickly.Hope this helps!

Checking to make sure the work is getting done and giving me pictures of progress, making suggestions about the rehab, following up with the contractor, and basically being the ahole that I can't or dont want to be since I'm so far away from the actual work. 

As long as people understand the house is a work in progress they're generally okay with it.