This makes sense and I appreciate your input.  

I would just treat it like a normal deal if the numbers make sense.

Max I am not sure if that business model makes as much sense anymore as it used to.

Because they aren't traditional tenants in the sense with a 1 year lease and to determine fit for the house, I like to start everyone on 2-4 month leases and see how they perform.

If you're confident in your UW and the numbers do make sense, I would recommend a seller carry deal.

A lot of investors based in markets like California and New York are choosing to purchase their investments OOS in the Midwest because of the affordability and numbers making more sense.

Hope that makes sense and explains the why behind it.

I am afraid we will fall for a property with a false sense of a good deal.Are there any suggestions to help me run an analysis that would better account for the larger down payment and allow me to better analyze potential properties in the future.

If I were you, I’d consider chatting with a property management firm active in that area...SlateHouse Group’s name comes up in local investor circles now and then...just to get a sense of what rents are really doing on the ground.

Hello, if you must live in San Jose, I'd say renting makes more sense, especially a 2.5M house for 5K a month.