If you conclude the leverage is so good that everyone comes out ahead that's fine but if you are only able to originate hard money debt that may be viewed as a red flag by investors who will question your experience and borrowing strength.

Legal violations and penalities(fines) even if you have accounting software to track the difference. 

Also depends on if you have strata/condo fees or HOA.The cash flow on my places are all over the place and yet I'm fine with all of the rentals for different reasons. 

(We lived in that house for years and in other properties we knew this was the case)Disposal: Was newly placed in property before tenant moved in.The fee: $145.We put the fee on the tenant's following month's rent as their responsibility due to resolution provided and plumber's confirmation that the disposal was working fine and structure had no issues.Tenant has disputed the charge, ("other landlords would be appreciative of our notice" "we don't eat a lot" "isn't that what a garbage disposal is for?

They can and will fine you heavily and order you to remove it completely if you don't go to them first and ask for an inspection and do what they want to make it legal and permitted.Don't try to "get away with it".Be a businessman and fix the problem the right way.

I read the fine print and found that the 90 day guarantee and how to get the $1,000 invested back involves actually sending him 2 qualifying deals.

Large basement and attic space, new roof and some of the kitchen is already torn out from the current owner. one bedroom does have a closet that will need built. plumbing seems fine, maybe a couple angle stops to change.

in our area that is a real big deal.. we did another demo and left a few pieces of flooring an inspector came on our job determined they had asbestos in them and we violated taking asbestos items to the regular land fill.. that cost me 19k in fines and 18k in lawyer fees to keep the fines from being really big..

So far it sounds like we will just need to verify via a CPA, which is fine, if that is what we need to do.  

Both times I was happy with the decision, so I think either decision will be fine, pending your location.