But to help protect yourself as a landlord and prevent these issues from happening, I would set up the tenancy agreement to have the tenant pay security deposit within 2 business days of signing to make the lease valid. 1st month rent must be received in full prior to occupancy or no keys are given and the lease will be voided along with a liquidated damage penalty of 1 month (where you could keep the deposit and if they wanted to challenge you on it then you could countersue in court for the full month penalty).

When asked about the minors being alone, they felt there was nothing wrong with the situation.I am considering informing them that the lease will not be renewed, waiving all penalties for an early lease termination, and offering them a cash incentive to leave early on a sliding scale with the highest offer for ASAP.Any thoughts?

If someone is injured or worse, you would likely not just be looking at civil penalties, but I would think they would come after you criminally.

But by going off market, hopefully a seller wont ask for that.Also, during the inspection period, you can back out the contract for any reason without penalty.

Neither are the penalties: http://massrealestatelawblog.com/2013/03/16/boston...

For unit 2, if they were under a lease and left early, then they will have to pay a penalty for breaking the lease. 

Hi @Ray Os, my understanding of case law (not statutory, nothing is currently codified as far as I'm aware) is that the maximum "enforceable" penalty for a residential lease break in Colorado is the equivalent of two months' rent. 

What are the prepayment penalties?

I then decided to take some of the profits from my IRA out, paid the IRS the penalty, and used it to start my business. 

No pre-payment penalties looking to refi right after the rehab period.