It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.Make sure your property manager is a licensed real estate brokerage.Understand you can not eliminate all risk, only mitigate it.

I would however make sure you approve the work and its being done by a licensed contractor ( who can warranty the work)  and they sign a "lien waiver".

A am a licensed RE agent and have rehabbed one property years ago prior to the housing crash.

I believe he's licensed in all the states as well

I am a licensed Realtor, so I am planning on NOT taking a commission and have them lower the purchase price but what other strategies have you guys used in order to buy in this hot Colorado market with a FHA loan and only putting down 3.5%?

If structured properly, SE can be avoided. 

In all reality he didn't know how to properly manage a property and the eviction process sounded too scary so he gave in and the tenants got a free ride for many months.

My question is that i have investors that are willing to partner with me but understandably want to see a proper work up of the numbers.

He currently owns a vacant house and is a licensed GC. 

I was a Texas real estate broker license for about 30 years.