Does anyone have a template or method that they use in order to screen tenants effectively in order to reduce the risk of non payment and damage to the property? 

We believe that we are lowering risk, increasing the average expected return, and leaving the upside unchanged.   

There aren’t many residential development companies operating at this level, which reduces competition and risk.

Hey Account Closed - I highly suggest  using a renovation loan and house hacking a multi-family if that is possible with your current life circumstances.The 203k and homestyle renovation loans are just amazing products and drastically help you reduce your risk, in my opinion, because you are able to leverage the cost of the entire renovation with such a low down payment loan.We work with a lot of clients who use these products in Chicago, and no matter what, in the long term, they gain great equity.If you aren't able to house hack - the process is essentially the same, but just with more money down with hard money or conventional construction loan.

Lesson learned is to pay more to get into a nicer area (B neighborhood) with more reliable tenants to avoid the vacancy risks, but again, if we can just get the 2nd unit filled we will finally have stable cash flow.

Going into an area with little data is high risk but could be high reward. 

Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers.

There are definitely risks that will be completely outside of the auction house.

Its definitely a big cost/premium risk allocation discussion

There are alot of risks using your heloc and you need to understand how you will make the monthly payments for the heloc AND how you plan to pay off the principle of the heloc.