You cannot by explicit law charge first month, security deposit and last month.  

How are these people gonna be able to pay these no-doc, interest only, 3yr arm's?"

They do not get to treat the deposit as their personal collection account unless your management agreement explicitly authorizes that structure.Key questions you need to answer:• Does your property management agreement allow the PM to deduct amounts owed to them directly from tenant deposits?

Normal wear ≠ same condition as move-inThis was stated explicitly and implied throughout.Normal wear includes:Scuff marks on wallsMinor nail holes from picturesLight scratches or dingsFading or minor paint imperfectionsEven if the home was freshly painted at move-in, paint is considered a depreciating, consumable item.Living in a home for months or years necessarily changes its appearance.2.

Model that gap honestly, fund it explicitly, and negotiate lease terms that reflect reality rather than the government's preferred timeline.

Being armed at home is a different story.

They will also use the original appraisal to determine DSCR, if the units aren't rented yet.Once you move to long term financing, they offer 30 yr amortization (this is critical for my rental strategy) with 5/1 ARM, 10/1 ARM or 30 yr fixed rate options (6-8% rates)TLDR; As a new investor/entrepreneur, the process was as easy as I have seen with any other lending institution.

In my market, I can see these places pulling 100-120k gross if done very well.Build: $$675k-900k+ all-in for a brand-new STR explicitly designed to maximize ADR and occupancy.

However, if you attend the inspection (many investors or PM's do not), armed with your records and photos of the move in condition, and possibly a copy of your Rental Agreement if it has specific terms addressing condition/damage issues, or an email from the Tenant that morning about the leaking faucet, you have the possibility of  "making your case" before the Inspector writes "FAIL".Lastly, I am going to disagree somewhat on your 50/50 assessment of S8 Tenants.

Avoid billing mid-lease unless the lease explicitly allows it.Lease-End Walkthrough: Schedule a thorough inspection near the lease expiration.