Do not accept anything from organizations that claim they'll pay the tenant's rent for 6 months or 9 months then after that they're on their own.

@Jesus Ramirez Income from wholesaling is treated as active income, subject to self-employment tax in addition to regular income tax (at ordinary rates).An LLC is one option but your entity structure should be decided after a full analysis of your situation by your CPA and attorney.

In some states this can take six months.You can take them to small claims court to get a judgment for the money you're owned. 

If they do not have to claim that purchase. 

If he has a policy that is adequate for the risk, then his policy will be hit first in the event of a claim and yours would be secondary to his policy.Because you are building your rental portfolio, I would seriously consider requiring all your tenants to have a base minimum renters policy.

You then proceed, based on state time lines, if eviction is required.You should not be concerned with your tenants defending themselves with claims you are not maintaining the property.

If it was regular housing I could get maybe $2400. 

He also posts here regularly.

It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.Make sure your property manager is a licensed real estate brokerage.Understand you can not eliminate all risk, only mitigate it.

Under 150-200k (not a huge problem, but I hear on the BP podcast of far cheaper properties being bought somewhat regularly)2.