We generally 100% require escrow - this seems like something that could probably be figured out - we do have the ability if needed in rare exceptions to waive insurance escrows however - usually we only do so in cases like condos or PUDs where the HOA requires insurance through them and they take care of everything.

Whether that is the ability to find needle in the haystack properties or situations, take on a serious fixer, self manage in a market that is remote and tough to self manage, or some other situation that most investors don't want to take on. 

Does 469(h)(5) specifically mention ability count spouses material participation even if filing separately - didn’t see this ….

I do all of this so as to avoid/not-having-to-comply-with the the provisions within the Dodd-Frank Act which require lenders to vet borrowers as to their ability to repay the loan. 

The reason being you are correct, many times the borrower is not qualified for the loan, so my response to that is why do I want to give a loan to a borrower who does not have the ability to repay.

HOAs can limit your ability to rent the unit too so you'd need to scrutinize the HOA bylaws to see if rentals are allowed or if there are any restrictions on rentals such as owners can only lease their unit for a max of 1 year etc..

It adds a personal touch and helps guests feel more at home.Things to Be Aware OfLocal Regulations: Check local short-term rental regulations, including permits, taxes, and any zoning laws that may affect your ability to rent the property.Cleaning and Maintenance: Short-term rentals require frequent cleaning and upkeep.

This could give the ability to have a better and higher appraised value along with selling it separately from the main structure (main SFR or SMF).

My $.02 is try a "rent to own" scenario where they pay market rent until they have the ability to save and actually buy the home from you.

I admired your ability to execute on such a high level while doing it all yourself.