I’d ask a NC title company if it will cause any issues.....getting title insurance for a clear title is all that really matters. 

On this side of getting my license and working in the industry, I can tell you it's not a clear black-and-white decision where having your license is obviously better.

Make everything very clear upfront so everyone is on the same page.  

HI Scott,If it were me (since there is no clear cut culprit, and it's not worth T-ing off a possible innocent tenant with a bill),I would simply warn them both verbally (door knocking), not to do this, and say it cost X to fix it, and say if it happens again you will bill them for it (although you don't have to follow through on this). 

The idea would be for someone to loan me the down payment, I pay them interest the whole time it clears my account, then during the rehab and once the refinance is done, I will pay them back their money. 

The second sale, of the homes that didn't sell at upset were about a year later and were free and clear so that meant that the banks showed up and made sure the bids covered their debts.Anyway, there is SOOOOOOOOO much more to it.I would recommend the following :1. 

Clearly, this isn't a legit wholesaler or investor of any kind.

They have more skin in the game then you do.Make sure you get clear title.

The instructions are not clear on how to deal with these situations.I just thought the purpose of line 2 was to determine percentage of personal use.

More properties than not won't cash flow with a mortgage (and just to be clear--just because a property will cash flow with more cash down doesn't mean it's a deal... you can make any deal "cash flow" with no mortgage).