@Joseph Nelson,As @James Wise implied, the first step is the most difficult and I would keep it simple. 

The article implied that landlords don't apply the same standards used by banks, maybe on purpose, rented to uncreditworthy tenants, who's bound to lose their homes in these cases.

I have no idea what improvements you have in mind, but I agree with the comment above that $40k implies a much larger scope of work. 

My current total LTV is around 50% which is very low risk but such low LTV implies that I am not optimizing my investment opportunities. 

Business pursuits or business property of an insured.When i was on the phone with their rep i really couldn't get a clear answer, they advertise heavily for landlords, and the rep seemed to imply that rentals are different than business property, but the definition in the document seems to say that multifamilies with more than 2 units would be excluded.Anyone have any experience getting a clear answer from Geico on umbrella coverage for multifamilies? 

Ozzie,By definition a short sale implies that the sellers owe more than they can sell the property.Once they have accepted an offer, that offer than goes to the lender for approval. 

And you must keep accurate records- if you do not issue proper 1099's by the end of January you will pay increasing penalties.You're incorrect. 250 hrs implies the safe harbor - which is entirely optional, unnecessary and has been discussed extensively on this forum.

You may be better taking out private money loans from these folks, based on the deal size that has been implied. 

First thing I noticed was the baseboard heat which also implies no central air.

Nor have I implied the tenants "couldn't survive without" me.