You'll see I focused on BIG expensive items where lots of deferred maintenance is going to cost you a fortune.

I go to garage sales, estate sales, and so forth and I buy items and resell them on eBay.

All it takes is one major issue, such as the insurance deductible for a storm damage claim, a tenant to do damage above and beyond the security deposit - never mind the loss of income while it's being repaired, or evicting a tenant who hasn't paid, etc. ... to turn break-even into a loss.

If we take 15% of rent (2300) for above items = 345.

I think it's great you bring these regulatory items to this group, though I am a little suspicious of the intent for this to cover individuals with a low volume of transactions.  

These cards are never used to purchase items, they are only used for taking money.  

I want to do this because I have been advised that if the old partner is on the loan paperwork, that he could make some claim to the property  and proceeds, although this flip is indeed a flop and there will be a loss. thoughts on this?

However foundation and roof are your major items to look at. furnace you want to be 15 yrs or newer, I just replace and have new now, less hassles.

Now I'm a mostly term guy with other items in my portfolio. 

That's a zero loss if the buyer balks.