Some states allow an eviction for repeated violations of a rental agreement.It is also not a good practice to wait to long to raise rent to market rates. 

And if so, this sounds like the most hypocritical practice, we require but don't provide rental verification. 

Is that standard practice to have to do this, or am I missing a trick or a different loan type similar to a HELOC? 

I have just bought my neighbors house and am renting out our old house next door. I’ve tried searching for people who have been neighbors to their tenant but haven’t seen anything yet.If you have experience in this I’...

I absolutely collected first, last and security for my class-C rentals until NYS prohibited that practice back in 2019.Many tenants cannot manage their money properly, so this mitigates the issue of not being paid last month's rent when they need to move and the new landlord is receiving those funds they have allocated for their housing during the last month of their stay.This was also helpful to me to pre-screen who has their financial house in order and had saved for their moving costs as part of their planning.If I still could, I most definitely would - without exception.

I should have clarified some of the things you pointed out though as that is common practice buying a STR anywhere to verify what permits you need and how to operate legally in the city.

That approach seems like it would reduce the chance of deals falling through, and I can understand why it would be standard practice.

google All inclusive Deed of Trust state of CA.. that will give you a really good description and if you can find the actual deed of trust to read its a great wrap document .. in practice   you have a current 100K loan at 8%  you sell by owner and take a 125k note at 9%  the 125k wraps the 100k.. you continue to pay on the 100k the while the new owner is paying on the 125k  payment lets say on the 100k are 1k a month the new payment is 1.2k a month you make the 200.00 delta..

Construction is great, but flipping has dozens of moving parts simultaneously, with hundreds of elements to manage.

I bet that translates into other good practices, like fast response times when people reach out to you.