A couple issues with Credit/income on paper.

People who have service dogs (or horses, as these are the only 2 service animals) that are genuine have no issue disclosing that on the front end and can answer the 2 questions easily - is the animal necessary for a disability, and what specific tasks has the dog (or horse, if you're getting one of those) been trained to perform? 

The main issue is your exit is capped so if your costs go up, your profit goes down.

That is done via placing the highest quality tenant possible, keeping issues to absolute minimum, keeping maintenance and service calls to minimum, because to make it work properties have to operate on cruise-control.

The main issues a lot of investors/PM's run into is the inspection period since Section 8 inspections are no walk in the park.

The issue is his definition of cash flow. 

We are a small partnership with 4-5 properties currently, but we are growing and hoping to find a reliable lending partner that we can do repeat business with.About 3 months ago, we successfully completed a BRRRR deal where we had excellent numbers, over a 1.25 ratio at 75% LTV, our guarantor partner has an 800+ credit score, and we had no issues qualifying for the loan.

@Bryan HartlenManaging low-end properties can be demanding due to higher tenant turnover, increased maintenance needs, and frequent rent collection issues.

Within a residence there is a presumed right to privacy and installing cameras by you or your tenants can bring you legal issues.  

A lot of maintenance issues are repeated again and again on all the properties a PMC manages.So, a PMC has pretty good idea of what many issues cost.