The two types I get from Arcade Headquarters are the standard full size cabinet with 60 games and then a whiskey barrel setup with controls on top with a 42” display mounted on the wall behind it.

However, with a SFH you will lower your standards when vacancy arises more than one month as you have no income coming in to male that payment.  

Getting it under market value would be a bonus.So, would using an FHA 203k renovation loan, which would allow me to buy something unqualified for a standard mortgage, which would weed out a lot of competition and push the price lower.

That's a real bait and switch scummy thing to do, but I guess I shouldn't be surprised these days. keep in mind this is not usually bait and switch it could be and they are not being scummy.they simply are at the whims of thier senior credit facilities wants and needs..

Quote from @Steven Stanimirovic: Hi Rich,The prepayment penalties you’ve encountered are quite standard with DSCR loans, as lenders often structure these penalties (commonly called "step-down prepayment penalties") to offset the risk of early loan payoff.

/ What is the standard in your market?

.: Hi All,Is there any way to structure a private lending arrangement so that income is considered passive (by IRS standards) and can offset accumulated schedule E losses?

This allows you to buy using a LO, but you don't have to sell to the tenant, which allows you to have a standard tenant in place. 

Again you enver have to accept it but it means you will offer it (ie. review it).This is standard for most investors to offer this.

@Karl Kauper with a SF you can require the tenant to take care of lawn and snow, but they might not be up to your standards.