Option Fee, Security Deposit, etc) can you do it with no money out of pocket?

There’s no specific IRS rule against refinancing a cash purchase and deducting the interest, as long as the property is used for investment purposes and the loan is secured by it.

With really bad credit I do require (in addition to first month and security deposit) 1/2 to a full last month's rent and/or a good honestrenter.com score.

((Basically a "Loft" layout, but enclosing half the upstairs -to be a more private upstairs bedroom with it's own toilet & sink))....

Your conservative approach to estimating income provides a solid buffer, and the strategic location adds a layer of security.

Things to consider: daily internal operations, external branding and operations, lending, in addition to inside out *legal protection and outside in** legal protection, privacy/anonymity/identity protection and security...Prevention measures at different levels, preventing the attack from being initiated vs preventing the attack (lawsuit) being successful vs reducing the damage of a successful attack.... there are many elements and I see people pick one and argue about it without looking at the whole

Consider all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.

I can have separate bank accounts, debit cards, security deposit accounts etc. and now with new features like automatic recurring transfers things are even easier and time efficient 

We don't need to "make homes cheaper", we just gotta remove the barriers and special interests that support monopolies, limited competition, centralization, corporate over private, and take things back to middle America, small business, main street over wall street. 

There are NO institutional investors that will jump on this kind of deal, but you can maybe find a private lender or do a Joint Venture (equity split?).