If I'm reading this correctly, this is a serious mistake on your part and you could be sued for specific performance, meaning that a court will force you to honor the terms of the contract.  

It's more important than you getting a higher return by forcing equity.You briefly mentioned not finding deals. 

If we do not collect we will 1099 them and they may not be forced to pay us but they will be required to pay uncle sam.

This is why it’s important to force them to get renters insurance

@Russell Brazil, there is an unfinished attic and I was looking to force the appreciation by converting into either a 1 bedroom or studio apartment.

The markets have become so saturated that they won’t be able to make their payments and be forced to sell at a loss.

I ended up having to get a lawyer involved to force her to sell as we were "50/50". 

For instance, I sometimes look to buy properties that have a "weird" floorplan that turn other buyers off, but which I know I can easily fix to force appreciation and/or rent--that might be THE deciding factor in whether I buy the property, but there isn't ANY data representing that factor!

Local Credit union has loan product specific to small multifamily investments. 20% down, 5/1 ARM at 3% amortized over 25 years, balloon payment after 10 years.

There are also 2/1 buy downs and ARMs to consider.