I hadn't really considered what would be in the contract, but you're right, you want that language in there to protect yourself and ensure you're getting the deposits transferred.Having formal language in the contract about the security deposits and prorated rents is going to make it sound like a rental, so I would suggest writing a letter of explanation upfront with your loan application and submitting it that way.  

Jeffrey, you are making very specific statements that would not be determined by general contract law but by very specific case law and judicial review.

My originations were over 85%, applications processed after formally taken, my persistancy ratio hit 98%, deals closed after initial underwriting and sold, secondary was among the top 5% nationally for closings during all years in the business.

How would you recommend a learner spend $$ on a formal RE investing education?

The Property Tax Assessment Adjusters (ptaaonline.com) identifies properties that can be helped, and their complete service includes handling requests for review of assessed value, completing a detailed analysis on comparable home sales, as well as the formal appeals process, which includes attending and representing you at any hearings scheduled.

If I were to buy it, would I be required to bring it up to code in order to rent it out under a more formal contract?

That’s right, MONEY, the lack of which is what people cite as the reason they’re entering wholesaling.But the reality is that the ONLY way to create a DEAL FLOW sufficient to sustain a profitable, worthwhile business is to judiciously spent money on a consistent basis on various marketing and advertising activities.First and foremost is a website, optimized to take advantage of SEO for local, and or long tail keywords.

Only then can you determine how to mitigate it, usually through portfolio design which includes reserves, cashflow/expense budgeting, and judicious use of leverage.

This will provide good passive income with formal management in place, equity paydown, etc.

You can, in some states, look up the entry bid through the clerk of court that usually oversees non-judicial foreclosures.