I have no idea whether these are or are not allowed in OH as I don't lend there, but a loan with a 2 or 3 year prepayment penalty would likely have lower points and fees because you are basically paying that penalty up front as a fee in this loan.

I think "what about my wife and kids" and their safety.

I really liked what I saw and from some basic research, the housing/tenant laws seem to favor the landlord (unlike NYC).

Please note the information provided below is a layman's definition designed to provide a basic understanding for the general audience.

market is too small and its all cash and carry basically. 

Would doing this basically double the lender fees since I would essentially be taking out two mortgages? 

They can basically just sit by the fire and wait.

Just the basics but what did I miss?   

So we bought in a safe neighborhood, know our neighbors well, and have the basics when it comes to home security.

I would be much more apt to invest in this type of deal, if you are truly a second, recorded lien position with a fixed interest rate and a capped upside upon any capital event.And finally, there is all the basic underwriting needs which will vary deal by deal.