While it took until the 15th to get all the rent, it gave her tremendous peace of mind knowing the rent was being paid each month without her involvement, and I felt better knowing I was guaranteed to get the rent without excuses, stress or late fees.

Leases guaranteed by the parents also so mitigates some of the risk renting to college kids. 

We actually reached out to a few "local" banks that have presence in the area and all of them either had a very short amortization period (10-15 yrs) or had a high personal guarantee threshold (60%+ of ownership) which would have resulted in asking my investors to personally guarantee the loan (big no for us). 

@Chad Kastel I don't know where you are but I guarantee there are other investors in your area. 

@Kristi Kandel, having the LLC hold the title shouldn't be too tough, but without a good business record, you'll have to personally guarantee the debt. 

It's no guarantee but it's a good place to start.1.

Or if I should give a guaranteed 8% of principle and we split the rental.

Initially they asked for a guarantee, but the lender wanted the father to be put on the loan.We understand the father will be on the hook if the daughter doesn't pay the loan. 

If they guaranteed that the marketed sft was correct, then you would have a misrepresentation argument to make.

The CAPX combined with the types of tenants that you're most likely (but in no way guaranteed) to get could turn the deal sour in a year or so.