I can tell you for sure that #2 and #4 come natural to me... that is why I do more of that.  

It seems either people can deal with it by their nature, outsource enough of what stresses them to survive, or get out of the business (and then badmouth it to everyone they know, typically.)

Initials: _______Tenant agrees to pay for clearing the sewer drains of the Premises of any and all stoppages, except for those stoppages which the Landlord will agree were caused by defective plumbing, tree roots, acts of nature, or which are declared in writing to have been so caused by the plumber or other person who is called to clear the stoppage.

My analytical nature allowed me to create quick scenarios for a calculated risk. 

The second mortgage would naturally be registered against title to protect the interests of your friend.If your friend extended you an interest-only second for 5-years (or however long until your primary mortgage term expires).  

If you're familiar with accounting basics, it tends to flow naturally. 

@Rickey Garcia I'm in the camp of "go for it," but I say that with the assumption that you'll do your homework before signing any paperwork, you'll have contingencies in your budget, and you'll be prepared to handle the stressful nature of a flip.

@Jeff B. with regard to there being a lein on the title or something of that nature? 

By its very nature priority in title is perfected upon constructive notice which is the recording of the lien in public record at the Recorder's office.  

I just got a quote from the natural gas company for $7800 just for running the gas line to the house.