Also, I don't know if it would be worth it from a liability perspective either, but would advise to chat with an insurance pro/legal pro.When purchasing a primary residence, conventional loan guidelines will require you to take down the property in your personal name.When it comes to taxes, you'll likely be able to take the standard deduction AND itemize Interest, Taxes, Insurance, Depreciation, and expenses prorated based off the rented portion of the property when reporting the 1040 along with W2 income.

That might be our only true recourse.I don't know what State you're in or if you used a builder contract or the standard State contract form.

A shorter term tenant could do fine for you because they are not bad but just people in transition, so you don't lower your standards. 

@Robert Piercethat's pretty standard

Standard disclaimer I’m not a Financial Advisor and this isn’t financial advice.I’d buy REITs in your shoes.

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.

It’s a good idea to confirm you have a path to record title in a way that’s financeable, even though this isn’t a standard fee-simple sale.The big question is whether it’s reasonable to pay a market-rate price when you’re not actually scooping up the land.

I think what you describe is pretty much standard performance for rental properties if your not paying cash and I am just assuming your putting max debt on them to try to get your return numbers into your criteria..

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. 

Only thing better would be initial deposit and then paid in full upon Certificate of Occupancy and punchlist complete.Of course, standard items should also be checked: licensed, insured, willing and able to pull all required permits, reference checks.I would also commonly avoid the cheapest bid you get.