In our opinion, Class C tenants have FICO scores from 560 to 620 - where their chance of default/nonpayment is 15-22%.

Shayan,Best option to avoid issues and stay risk free along with having a better approval chance would be to go with a Cash out refinance.

There is a chance a national wildfire or disaster policy will need to be created, some form of Government Service Entity such as Fannie and Freddie to stabilize the insurance market. 

If the use of the funds are for business purposes, like investing in real-estate, you will have an easier chance of qualifying for a loan documentation and income wise.

If you’re repeatedly using OPM successfully, the processes to follow obligate stricter adherence to the system and so chances are you are a good bit more careful.

Some owners are willing to miss out on thousands of dollars just for a chance at a couple extra hundred dollars.

But I will take my chances.

They guy who had never invested in real estate had no chance. 

In France, they sell wine.They identified their customers (in your case, reliable tenants) and provided what they wanted to buy (rent).SummaryFollow this proven, step-by-step process to maximize your chances of success and minimize risk in real estate investing.Has this process proven successful?

If your portfolio is large enough, 5% is better.Now, some people believe that this diversification reduces the chances for a large gain.