Then there are daily late fees.

I have seen it too many times where an investor will buy an older property or even a new build, they net cashflow similar to you for a year ($100-$200 per month) and then a $5,000 repair or insurance/tax hike here hits them and it's a loss - they either get forced to sell or are majorly setback and unmotivated. 

This year I may see if if I can get a construction loan to build 20-30 apartments, then refinance with an asset based lender. what markets?

Until then it can be really stressful. 

I was able to get more information on the property then if I didn’t know the seller and I’m still able to contact the seller if I have questions.

If it's not then maintenance can easily eat away at your returns.

Often times someone passes their NMLS test, hangs their license, does a few Fannie/Freddie deals, then tries to get into investor lending.

If the risk of having to refinance into a new loan is a big deal for you, then you might consider simply operating in your own name without an LLC.

Planning on living off of the positive income and then eventually on our investment.

Then you’re going to ask her to give you a 3 year 0% loan?