I use to collect a security deposit but decided it was more hassle than it was worth.

A lot of very seasoned investors own homes and properties in the same neighborhoods or communities that they 'collect' over time.

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, recent evictions.

Your home IS in a location that could make it a good STR/MTR given proximity to attractions and it's in beautiful shape so I don't think the operator is pulling the interest/opportunity out of their a**.Attorneys would probably argue with me, but if their LLC is going to rent it, I would still get the individual on the lease or at least a co-signor guarantor agreement so that you have the EIN and SSN for purposes of evictions and collections. 

We collected all the different main servicers and their fees for comparison then shared it on our resource list.  

Plus the logistics of trying to get multiple note holders to agree and be happy on servicing, collections, work-outs, and exit strategies sounds like herding cats!

Let them know how much is owed and collect.

Then I explain my process in brief and simple terms: background check, lease agreement, collect deposits and ask if they'd like to proceed.

Not everyone starting off gets hit with this, and if you can buy a portfolio it can "de-risk" the issue to some extent, but if you have one property and experience an 8-9 month fight to collect rent prior to eviction with a large repair bill after that it can be very painful.ALWAYS use a licensed PM in Detroit. 

I am using Zillow to collect rent payments.