I am an Air Force veteran who would like to get into real estate investing.

I do not know of any laws preventing such an arrangement and I'm pretty sure this is done all the time.  

Encourage the tenant to make certain the litter boxes are changed often to prevent accidents (I keep mine in a bathtub in a bathroom we don't use).  

I am in the process of doing my due diligence to prevent dealing with inexperienced lenders.

What do you think of small(1000sqft) 3/2 homes with electric wall heaters instead of traditional forced air?

I want to discuss if terms I am speaking of are a possibility.I didn't pull these out of thin air tough..

@Dan LieffortUpgrading to an HVAC/ Central Air isn't a necessity, but renters want them.Window units are extremely inefficient and cost a ton to run the majority of the time.In my multis I get more money per unit 100% of the time.As far as cost goes I would just get a couple of GC's/ AC guys and go with who you trust to do the work, has competitive pricing, etc. and keep your tenets happy.I can refer you to people if you need.

What makes that scenario much less likely to happen today are the reluctance of the banks and lenders to leverage themselves that much, the forcing, by regulation, to prevent them from getting too leveraged, and the collapse of those toxic assets that used to be traded around like a game of musical chairs, with the value only set by whoever was dumb enough to pay it, in the hopes there would be a bigger fool down the road. 

I know both you guys try hard to prevent this from happening. 

First thing first, you will have to determine if the price is reasonable to FLIP or try to do an Air bnb model for high cash flow.