Thank God the insurance policy did not exclude mold/water damage.  

Uninsured Damage: Although a prudent note investor will always require the mortgagor to obtain fire/hazard insurance on the property, some types of damage may not be covered by the policy.

Mike it needs to be notarized prior to serving tenant.Of course you know you need to sign in front of notary, or they will not notarize.Good luck, by the way is the tenant late with rent ?

Bleeding heart will make you feel sad for that first person too if you deny them...Once they accept, let the 2nd person know the prior application was approved and since you didnt process her application you are refunding the application fee. 

When purchasing a flip make sure to ask about a title insurance binder policy.

It makes intuitive sense that you would do that absent any underwriting or mortgage stuff mucking up your plans.If you have a lease that says they are moving in prior to you moving out, it doesn't make sense that you would voluntarily be homeless, thus making it look like you dummied up a lease and had a buddy make a security deposit just to check a box, which would be mortgage fraud.

I'm a newer investor/landlord and only have two other rented properties prior to this one which I just bought 3 weeks ago.

If it was done prior to December you're less likely to have serious problems.

Since, I intend invest full-time and run my investments as a business, would it be best to form LLC prior to investing?

Not sure how verbal agreements would hold up in court if this ever went in that direction but I feel that having this death prior to taking possession of the premises changes the way I had screened them based on income.