There are additional benefits to the seller, too, as they are receiving interest on the payment and there are some tax benefits as well (I'm not an accountant!).  

I earn 4% for a 6 month term and every 30 days one matures and I roll it over (usually adding additional reserves). 

A copy of his Accord with you added as additional insured sent directly from his carrier.Personally I'd make sure you have your own builders risk policy & I'd consider a GL policy too.I'd also be well versed on contractors license law (if there's any) in the state your operating in.

That is because I make an additional payment on principal every month on top of the normal mortgage.

My background is as a structural engineer (licensed in ~20 states), and over the years I’ve seen firsthand how engineering/design input can make or break a value-add project.I’m curious how others here have structured partnerships when one partner brings specialized skills (like engineering/architecture, general/specialty contractors) in addition to capital.Do you attempt to treat them as a straight equity partner, as a reduced cost service provider with upside or something more creative?

Additionally, others are targeting the same lists, so finding an exclusive, highly motivated list is difficult.

You will of course need to float any properties that you purchase with negative cashflow until they start to spin off positive cashflow so account for that in addition to the down payment/ purchase costs.

In addition, it's best to be close to a beach access point. better Proximity with an older home could do better than a new construction home built at the end of the street close to highway 98. 

So, I do agree with hedging your bets and serving a notice to pay or quit.The issue with them not paying rent and you using the security deposit is that they have zero incentive to clean the unit and if they damage it, you have no additional funds.If it were me, I'd serve them an eviction notice and then mark them as owing on a credit reporting site(I use Front Lobby).

He placed the unit on the MLS' 30 days prior to the lease expiring + 30 additional days before we found the new tenant.