Hi @Dave GreenIf you sell the rentals, or even just one, you can use the funds to cover the down payment on a DSCR loan.

With hard money, there are lenders out there where you only need to bring 10% of the purchase price and they cover 100% of construction.

Maybe insurance will cover it.The property manager can't possibly sit in a rental 24/7 to ensure nobody squats.

(Of course make sure it covers your costs).

You’ve got the right idea when it comes to liability protection and separating the income for tax purposes, but there are a few things to consider with the "due on sale" clause.When it comes to paying the down payment, it’s perfectly fine to use your personal account to cover it since you’re personally guaranteeing the loan anyway.

I recommend Real Estate Rookie by Ashley Kehr; she covers these topics better than I've done here.

Roof is approx 15 yo. 4 water heaters been replaced in past 5 years. current brings in $5200 month.

If stability is more your style, the home equity loan covers you.

Have them sign a lease addendum that covers this issue. 3.

Initially, covering your mortgage is a reasonable goal.