Remember that in addition to the "normal" expenses encountered with ownership in these properties you will have more breakage on furniture, dishes, sheets, towels (you will be providing all of that) and it's not like a rental across town that you can pop in to fix a garbage disposal, replace a bad fridge etc.

Looking through the site quickly there is a statement that state fees are an additional charge.

They are responsible for their own insurance in which my bank and I are listed as additional insured.

Some additional background about me is that I'm self-employed making a good living, own a house and a credit score of 760+.

Same scenario to provide $100 mo at 7% loan rate would require additional $14K down or reduction in loan.

They may be called rent credits or additional option consideration as recommended by your attorney.

I would secure landlord references and employment verifications if you can, in addition to credit.

So, the bottom line is that I sometimes look the other way when an additional person or two moves in, provided that the tenant is paying the utilities and that the new person doesn't cause problems.

Later on when the LLC is successful, he/she can put in the extra money for the additional 5% if needed.

In addition: if no one is present at the home, owner/landlord can enter during reasonable business hours for all kinds of reasons including "inspection" (which could mean anything) as long as notification in writing is left inside the unit at the time of entry.