Is this common practice, or should I walk away?

The hope is this discussion will be educational/helpful for all TK investors, but also be practical for those seeking the tools and resources to get into TK investing. 

As many people are saying, there are lots of things to learn and practice as you scale with REI.  

I agree with Bruce though, experience is the most practical way to learn these types of things.

That's what creates the excitement that leads to the consistency that creates success. 

There's no "rules" regarding who has to be on the lease, you can make your own choices but adhering to common practices is probably wise.

Dog breed restrictions consistent with what our insurance company prohibits. 

It's also a good practice to make sure that the current owner is up-to-date with their HOA fees, otherwise that bill will become yours upon purchase.While some people opt not to get inspections on condos/townhomes that are in good shape because of the nature of the HOA taking care of CapEx, getting an inspection is always a good idea so you can learn more about your property and to potentially discover things that may not meet the eye.

I am familiar with the message of buying above UPB but never known it to be a good business practice.

Something else you'll want to consider is the Lease Laws and other best practices.