(emphasis mine) It's about intent.

So the emphasis on cash flow makes sense as well if anything to just avoid going negative.

You really need to be candid and ask them about their current business emphasis.

I do look at cash on cash return and appreciation potential, but cash flow is the main thing I focus on so I place a greater emphasis on this when looking at deals. 

Occasionally a tenant has done some significant damage, but so far nothing that was insurmountable.We put an emphasis on offering good rental units (B & C), maintaining them well, establishing keen rental criteria, thorough tenant screening, a strong rental agreement, clearly discussing every aspect of the rental agreement with the tenant before we hand over the keys, establishing and maintaining good relationships with tenants, good relationships with neighbors who will alert us as needed, a good relationship with local law enforcement, regular property inspections, swift follow-up to rental agreement violations, sufficient insurance and a sufficient reserve fund.We stand behind our mission statement:   "We strive to provide safe, clean, affordable, comfortable, and quiet housing for responsible renters in the neighborhoods of West Vancouver."

@Chris Duzan Chris Davis made an excellent point in not placing too much emphasis on entities & just get the proper amount of insurance.  

My dream is to flip houses, with an emphasis on design.

In meantime, happy to start small and careful and learn as I earn (emphasis on learn).

He seemed to put a lot of emphasis on choosing your market which I liked but I can't sink $1000 into his system right now.

I think the primary difference is that in Commercial properties, lenders are more interested in the Cash flow and potential upside when deciding to finance and not little emphasis on buyers individual credit worthiness or cash in bank. ( Don't get me wrong, he/she still needs to show 30% down payment but that is not necessarily his/her personal income).Flip that to the residential side - Owner credit worthiness is the most important criteria and the residential asset is secondary.