@JJ WilliamsI am not a fan of giving cash flow or equity or anything like that in these scenarios- I would rather pick a fixed rate to borrow on and have them act only as a lenderAs time goes on cash flow will increase over time - do you want to owe them for perpetuity on that asset ?

I want to make it as simple as possible for my tenants to pay.Software is a common question on BiggerPockets.

Would be fine with a 10 year arm or 30 year fixed product.Why would you not do the 1031 exchange option based on the way you outlined the scenario above (acquire an appreciating asset, defer taxes)?

50% down is considerable but common.

I talked about the same scenario (refinancing conventional from VA to reuse benefit) over here.

Door count is the worst (commonly discussed) metric in the real estate investing community.

Common hidden costs include not accounting for increases in property taxes and insurance over time, underestimating repair and turnover expenses, and the cost of property management.

I know two projects that ended up in BK with this same scenario, with the land and house lost.

On my rentals which are generally C+ to B class I have never regretted giving a 1 year lease since the most common reason to oust someone is nonpayment and that is just as easy in my state with a lease. 

@Brian Willie this setup is very common to avoid having each Property LLC to have its own bank accounts.Only the Management LLC will need Operating and Security Deposit accounts.They all need to be single-member LLCs with the same owner, or else it gets very complicated.Find a good tax attorney to help set this up.