Also helping was a relationship with that bank (deposit accounts) and good credit. 

It is common for rental property investors to feel the pain when a property turns over but keep in mind that is why we retain security deposits for you. 

It's simply factual:  you violated the lease by smoking, stop it, remove the resulting odor and that a repeat action could result in eviction and loss of security deposit.  

Im assuming that is what would catch any errors in owner distributions, deposits, profit/loss? 

These are NonQM loans that underwrite by using the gross cashflow (as evidenced by net deposits in your bank account or how much was reported on your 1099) and then applying an expense ratio (usually 30-70%) to determine your gross income.

This will provide you two benefits:1) Help you better define the position, so you can hire a better matched person2) Make training the next person easier

New tenant must go through complete vetting, sign the lease, pay security deposit and rent, and move in, prior to the referring tenant getting their $100.

Also, most banks will not allow you to "borrow" your down payment, so what you would need to do is get the 50K personal loan and then have it show on your bank statements for two months (without showing the money being deposited, so in reality this could be 3 statements before you have that. 

If you’re open to taking a closer look at Memphis, I’d be happy to run numbers for you on some properties that match your goals.

Currently, I'm analyzing different markets to see which one will best match my strategy.