I have done extensive research in the risks, how to structure such deals to mitigate those risks as effectively as possible, and legal considerations of each strategy. 

Quote from @Aaron Zimmerman: I would look for other ways to legally reduce income such as cost segregation studies.

If you don't sign the contract and hire that agent, then they legally shouldn't be working for you.

Usually draw fees are very minimal though and if you plan them right, it can be a great way to replenish your cash or pay down debt from rehab.

Everything you said is exactly why-- debt levels, market demand, associated costs(taxes & insurance).

-The liability insurance acts as a shield between owners and tenants - creating a legal barrier that doesn't typically exist in rental properties since tenant agreement with with HomeRoom and not the owner.

NO debt NO debt NO debt on rentals is the way to go as you mature in age as an investors.

Further, the property may qualify for larger loans based on the increased cash flow ability to service debt.  

For example a 25 y o applicant who has used credit minimally and has an unpaid bill of $50 in collections from when they switched phone carriers may have a low score, but the only negative on their credit is this one SMALL $50 debt.

You do need to have steady employment, decent credit, and not be drowning in debt.