Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.

PLRs will rarely match your proposed transaction structure.

And if this is illegal in some states...what exactly is illegal about finding interested investors and matching them up with a funding source?

If they won't pay, end their lease and deduct the cost from their deposit after they vacate.P.S.

Notice that the table you just pasted in matches my Scenario 2 exactly.

I understand it will be hard to match (if not impossible) the 10% yearly income and 5% appreciation of properties (those are my numbers).

Money was deposited into my account the day after checkout.

Making additional payments or taking a shorter term are just depositing more into that savings account (it's not like the property appreciates more by paying down the loan). 

Set up a Joint account with the seller so you can make deposits to continue the automatic payments to the lender until you refinance the property.Thanks,Dustin

Leases are signed electronically (esign.com), and I set them up with RentRedi for deposit, cleaning fee, and rent payments.