The builder suggested a local bank that they use and would like to see them succeed and referred me to the commercial lending department.

How did you arrive at what you refer to as a plan (it isn't) of buying one rental a year?

Hopefully your lease has provisions that explain the process for adding a house mate/ how long guests can stay/ repurcussions for breaking the lease and I would reference those in your note.

The previous owners did a do-it-yourself remodel which had tons of red flags if I had taken the time to cross-reference the sellers disclosure with the inspection report, but at that time the market was hot and I had to move fast.

Everything else is a level of passivity vs. how much management and oversight you want.I will still have more active investments as well, but I think it's silly when passive income is referred to as part of say, multifamily.

They understand that there's value in what they provide, which is steady, documented income, minimal turnover, steady payment, quality references, no drama, and peace of mind.

Also for reference, pretty typical SFH flip type properties in my market are about $300k - $400k price tag.  

At least an LTR tenant needs a place to live and a good reference. 

I'd just make sure to check their references.

Thank you that is also what I’m thinking but there are so many different answers some refer to financed purchasers having only 60 days to begin occupancy - as a buyer who will not need financing that is where I am finding difficulty - our agent is checking but also getting different answers - I may just call HUD and speak to someone.