And yes, unless you have some weird type of federal government insurance [does that exist?]

Just keep in mind that there are many regulations imposed upon you from your state and your brokerage related to wholesaling while licensed. 

For example, you cant put a single post grad girl from the suburbs, in the ghetto - believe Ive tried.My mobile home tenants (in one area), are flirting with the poverty line; government assistance, food stamps, etc. 

There is also a lot less regulation in terms of deal making in the commercial sector.  

I don't think they are really effective, a contractor knows when they screwed up, it's then you place to justify that screw up to a real cost or loss that is reasonable and from there you'll need to find agreement.I had experience with government contracts, such just aren't appropriate for small jobs, under a half million and as the project gets bigger, the terms can be more involved.

I understand that there is an organization in Cali of HMLs using the term private lender, we've been over that, how one may market themselves is one thing, how regulators will view you may be very different.

Even if the record owners have lost interest, due to relocation, drugs/alcohol, other disorders, incarceration or death, neighbors and community government people and secured creditor "people" care. 

I suspect Armando and those Guru's like him are a part of the reason our state is seeing more and more regulations pushed on investors. 

The retired couple have total monthly income of $1,700 from their government pension, which is guaranteed.

You could state this in the lease telling them that they will need to apply all regulations pertaining to the "Drug Free Zone" so that as they definition changes you won't have to change the lease.