If not does the contract provide that your liability for failing to close is limited to the good faith deposit? 

In one case they failed to collect rent for 6 months and then took another 3 months to turn the property over.

If you fail to pay your mortgage and they foreclose, they are going to recover a % of what the house is actually worth.

Due to Covid they had a Tennant themselves who failed to pay rent which caused them to fall behind in their mortgage payments and ultimately had a large impact on their credit. 

I've been in these hokey partnerships two times and ended up suing the general partners both times because, sad to say, most people in this world fail to perform what they promise.The type of partnership you are writing about rarely ends well. 

Even people who come to real estate investing from high-paying jobs usually fail to understand that money isn't an infinitely renewable resource, that it's not true that all they need to do is work a little harder or learn an easy new skill and then they'll swim in money.You are never going to spend yourself into the big bucks.

But while it is theoretically possible to do a deal with no money, if you don't have cash reserves you are taking a big risk that the deal might fail. make sure you only do GREAT deals so that if it doesn't work out as expected the deal still works.

When leveraging there is the possibility that you lose both your investment and personal properties all in one swift swoop.So, I would need more numbers to understand what the rental income will be, how much extra cash you have in the bank, or are earning to pay the mortgage when it does not rent as fast as you thought, or you cannot get as much rent as you planned, or your tenant both fails to pay rent, thrashes the place to the tune of $10,000 and it takes you 9 months and costs you another $5,000 to get a judge to remove him from the property.This is my philosophy and I've made millions and millions in real estate over the past 50+ years.

Most people you see out there having success don't share about the fails and the hard times they went through to get where they are now.

Letting some of these businesses fail would have devastating long term effects.