Conventional loans must always meet either Fannie Mae or Freddie Mac's guidelines, which means you can get creative in how they are structured but all of your creativity is limited to the guidelines which can't be bent or altered regardless of lender.  

Should something adversely alter your investment property, having too much debt without reserves can knock you out of the game forever. 

How would you alter the area cap rate since there are not many 12 month leases?

And yes, the lease expressly states no improvements or alterations can be made to the property without written consent of the landlord. 

First - What does the lease say about altering the property?

Also, you may (consult with at least one qualified professinoal) make the LLC look like an alter-ego in my opinion. 

To protect/maintain the corporate veil, you need to avoid co-mingling and using the LLC as your “alter-ego” (that is he legal term)...

SituationFirst, my tenants decided to make alterations to the property which they are clearly not allowed to perform without the landlords consent per their lease.

SituationFirst, my tenants decided to make alterations to the property which they are clearly not allowed to perform without the landlords consent per their lease.

A way to add and delete codes from the lock and a way to alter the thermostat settings and watch for crazy guests who think the A/C needs to be at 60 all the time.