He had collected a $5000 deposit from them, and also was collecting more from them on a monthly basis that what we had originally been renting it for and pocketing the difference.

What would be interesting is to see your original spreadsheet you put together to show how much money you would make on this and how much you anticipated for repairs. 

Generally you will have to sign a document and prove up you are not living in the property or intending to use the property when the loan is originated. 

Origination fee 1% or $700.

If someone is promising you 1% origination and a sub 8% rate, it is likely untrue.

However, if you plan to rehab at all, you will then need a licensed contractor to provide bids on each project you plan to rehab.You will then be asked to provide a proof of any funds to close, purchase agreements, and if closing as an LLC - most times documentation on that LLC.Overall, the larger number of units (5+) makes the lending process based more off the property than the borrower, contrary to traditional single family housing.I would recommend you work with a Loan Originator/Broker who will be the medium for you to the lender/s.

I'd screen them the same as you did the original tenant. 

I originally purchased this house to be nearby my grandmother in her last few years but realized quickly that it was a prime area for short term rentals as there are no zoning rules or permits necessary etc.

Originally posted by @Mauricio Duarte:@J Scott, I see.

Originally posted by @Michael Craven:Hey Sam, we just closed last week on our first STR cabin in Blue Ridge.