Mid term rentals should be more flexible than the traditional LTR, but it's ok to have an agreement,  and a damage deposit. 

@Jacob Lopez, as others noted, house hacking is not really a cash flow play, in a traditional sense, since you are effectively removing 33-50% of the property from the rent roll.If you plan on living in a unit for a couple years, then holding longer as an investment, I would underwrite it as an investment.  

This deal with originally purchased through a traditional loan.

Keep in mind it is a lot more hands on than your traditional rental.

I've financed foreclosures before it just has to be in worthy condition for traditional financing.

There is no DTI when it comes to these investment specific products if you’re worried about not qualifying with traditional products, talk to a investment, focus broker who can help you we out the options and leverage with a DSCR loan

Hey David, the type of loan your wife mentioned isn't available in the traditional lending market as far as I'm aware.

If you're planning to get another traditional mortgage for a new property in the near future, you'll want to consider the impacts your tax return/reported income will have on qualifying. 

higher interest rates on the DSCR than traditional loan.

These are more complex legal structures that can provide even more protection than a traditional LLC alone.