There are some great suggestions here on down payment, interest rate, servicing, and underwriting the borrower.  

I converted my RS3 zoning to a RT3.5 and converted my basement duplex into a separte legal apartment. i went from 2 legal units to 3. 

Be prepared to provide extra documentation, as the lender will need clear collateral and legal rights in case of default.

Homeowner should have an adequate policy and you can use additional damage protection from services like Safely and Waivo.Yes, security deposits are normal for MTRs and highly recommended. 

Is my criteria legal? 

One more thing I should address:  Installing cameras inside of a residence with other tenants can be a HUGE legal violation.  

If you think this distinction is unimportant, consider what happened to investors who placed their IRA funds with American Pension Services,—an administrator whose founder mishandled their money causing a $22 million loss.

I highly recommend you create an "Animal Addendum" which is a set of rules for any animal, whether it's a pet or service animal.

I love talking about this stuff so much that my kids complain about it constantly, so I thought helping other people understand some of the general contours of the industry from a legal perspective would be a better outlet than lecturing teenagers for a fourth time about what a defeasance is!

This is something their screening probably would have caught, or their system would have a legal procedure to deal with it.