Best to call city hall for the town you are buying in to see what if any rent control rules are in place. see link below if you require additional information and call the Jersey City Landlord Tenant relations office. https://www.jerseycitynj.gov/cityhall/HousingAndDevelopment/...Jersey City CPI chart on recommended rent increases: https://cdnsm5-hosted.civiclive.com/UserFiles/Servers/Server...The state with the highest eviction rate in the country right now is South Carolina. 

If in the future they try to buy a house, the lender may require it to be paid but that's a long shot. 

Quote from @Raghavendra Jakkani: The tenant should provide proof of income that doesn't require detective work.

We do all our loans as balance sheet loans, so that means short term fixed rates with 20yr amortizations and 20% down. 

We also manage properties that have been neglected prior to us managing them and they require more.

I don't know what his minimum liquidity requirements are to join.

They require or they request.Big difference. 

Be sure to pay attention to anticipated ARV and max LTV on the refinance, as well as seasoning requirements - this is where I usually see people run into problems.

I put more than the 3.5% required.

Aside from what everyone else wrote, note that adding units require various steps that you may not have considered (e.g., adding a new street address with USPS, etc.).