Maybe you need to look at places that are already being rented out, such as N-plexes or apartments.

Also, as Ned said, there are seasoning rules on refis quite often. 

As @Ned Carey said lower LTV will reduce your risk. 

As Ned said above, I wouldn't use that formula for a buy and hold.

As @Ned Carey mentioned above, he’s provided me a front row seat to understand the deals he’s involved with and how he goes about putting them together.

@Calus Glispie as @Ned Carey said $1 is legally considered sufficient if not adequate consideration for a legally binding contract along with a couple other elements.

@Nahal BeckamI concur with @Alan Grobmeier that a high credit score means they have been responsible and as @Ned J. states you always have the option to amend the contract. 

Second, as @Ned Carey said, details matter.

I thought about this, more particularly with high-dividend REIT stocks, such as NLY, BXMT, WPC.

As Ned mentioned, even though some of these expenses only occur once in a few years, they can be quite high and must be factored in if you are to stay in business long term.If your expenses are 50%, then you will only have $262.50 left for the mortgage payment and any cash flow.