It is VERY management intensive, hence the reason most managers will charge 20+% of revenue, versus 10% for LTRs.  

If it's an (A) location you do not need 1.5 years especially to land a franchisee restaurant tenant.When I look at a property I look at the current value, the dark value, and the re-potential value.Lot of commercial developers sell off marginal tenants at market rents.Example me buying a Wal-mart with 10 plus years left at a 7 cap is way different than trampoline or workout place at a 9 cap.On its face the 9 cap may be appealing but then you find out for that box size the crap tenant is paying 1 dollar below what national tenants pay.

If you can figure out a specific strategy and be THE guy in the space, it could work out.

Lovely attached, outdoor terrace to relax and enjoy the seasons, sparkling community pool and large gym for workouts.

Keeping rates high could destroy capital intensive activities and businesses.

I figure I can always go back and run more background checks on people further down the line in the process if something doesn’t work out with the first applicant or two.

If they have other property (outside of a primary residence) then it could work out but you have zero equity protection and going in 2nd behind hard money provides all sorts of risks and issues, even if they allowed you to.

A few brokers in my office have tried but the red tape and time intensity has either killed the deal (seller got fed up after 90 days of escrow) or the property did not qualify. 

Our calls and quarterly intensives are invaluable experiences. 

It’s brilliant, I just can’t work out the fine details because of my lack of knowledge on specifics on how mortgages are regulated.