There's a lot we do to ensure compliance and protect ourselves from lawsuits - from heavy duty insurance policies to video recording in every room and badge locks on the doors, to having an extremely solid legal team (thankfully, we've only ever had to call them to write up deals and fight with the occasional bad contractor).You'd be at risk for anything that happens there that some lawyer (the kind that advertise on TV) could try to pin on the property, especially if you're the only person in the picture worth suing.

Looking for Austin/Central Texas CPA for occasional advising and regular tax prep.

Two family members, my spouse, occasionally my contractor who knows tons about real estate, property values, and everyone locally in the business, and depending on what the issue is and possibly my realtor who is also a friend(this with a grain of salt as I know he also looks out for his commission).

Occasionally we will have draws usually 4 draws with the largest draw being the final draw, when work is complete.

I occasionally partner up with other investors on flips.

Somewhat long distance, so we had to work in a boots on the ground commercial customer there to handle occasional on-site requirements.

I did buy 5 in my first year, a few more the following year, and life changed.Fast-forward 10 years, and I am selling most small rentals and moving to passive investments while doing the occasional flip.All this said: my vote is the 10yr ARM.  

We rented it out part time and used it occasionally.

Although, as a Realtor, I prefer to stay on the investment side of things, I do take on an occasional residential buyer.

We have been lucky to find the occasional deal that give us $500-$800/month cash flow on a single family home, but most are closer to the $300/month on average.