To us, this meant they had a decent amount of discretionary income they could allocate towards rent if something else went wrong in life.

Another method mentioned above is the RUBS system for allocating utilities, which has the same basic result.I can say from experience that very sophisticated, very professional teams are building institutional-grade apartment buildings with 100+ units in Seattle that do not have individual meters for all utilities.

You can find the proposed budget, allocations of funding and the justifications for allocations if you're really concerned after being excited by a "news" article.

For us, i would rather allocate the time my maintenance staff uses to turn apartments and take care of maintenance calls.  

YES, the interaction or cooperation of two or more individuals, organizations, or other change agents to produce a combined effect greater than the sum of their separate effects -- synchronized energyA new area for BP could "Pooled Investments" as a percentage share based on all member contributions and through pro membership who are entitled  a share (conceived as $500,000. 00 - $1.00 from every member) and when a "deal"is found a member can receive (no credit check, no length of time, etc.) a either a 1% to 10% dispersion of "funds" to be allocated towards a real estate transaction -- the purpose of the financial assistance.

I will add that few Properties cash flow in current San Diego market at 75% LTV 30 year (15 year is even harder to cash flow) especially after allocating for cap expense, maintenance, and vacancies.  

Although their intention of paying up front originally.. was because they were allocated living expenses out of a trust while they attended college.

I spoke with my real estate lawyer and he said to look out for complaints from tenants about noise and the inconvenience of having contractors coming and going.The tenants have a toddler and an 8-month old.The only pros I think would be to lock them in for at least a year and the finished basement would increase my house value.Cons would be that the money they give would be allocated to the finishing of the basement and I would need to set aside money to pay down my monthly operating expenses.Any feedback would be appreciated.

Just allocate at least 10% of the rent towards any repairs throughout the year.

There is a difference in the market between an efficiency and a 2400 sq ft ranch style home.Another note, never have a tenant in a residential lease be responsible for maintenance or repairs (not including damages they cause), it is going to be a violation of federal tax law as to depreciation allocations and you can end up filing false returns as an owner.