(As I write this sitting in a Florida beach for the next 10 days!

@Sam Peterson awesome write up! 

If you don't and the Grantor later sues to set the deed aside, it's possible the underwriter might deny liability as a matter known to the insured and not disclosed to the Company in writing prior to taking title.

Other advantages besides cash flow are the appreciation depreciation and tax write offs.

If you are paying in cash, you'd have the bank write a letter indicating you have the capital on deposit or you can also print out your bank statement showing the funds.

The bad thing is, you are around your tenant a lot :) Get the terms and conditions in writing.

@Drew Cameron hmm, this is an interesting post since you are a lender that writes FHA loans...but ok. 

If you're taking a security deposit, write "N/A" or don't fill it out.

They cannot file an eviction suit before they give this notice in writing.

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!