It's thankless and non-stop.

If I have a problem with my newspaper delivery or something equally non-critical, I'd like an answer or fix  now, but if it's later today or tomorrow, not a big deal. 

@Vinny Muli - it is VERY hard but not impossible to get an equity line of credit on a non owner occupied property. 

Well it looks like non-profits are exempt....So I suppose Dope Traffickers will just buy an ongoing concern non profit and operate that with ownership as an IBC (International Business Corporation) in some privacy haven, or Russia, or Yemin or somewhere (if those places have privacy laws???)

The first 6 months are acquisitions, removing non paying tenants, and taking over operations/management which is just the beginning of the stabilization process.

The formula you gave is for one month's interest on a NON-amortized loan.

Our pet deposit is non-refundable which is what I generally would recommend (assuming your state and local laws allow that).

- Value add - How much does it cost to convert Non-climate controlled units to climate controlled units? 

If you need 10 minimum and have to hold those non-paying tenants until you get 10, what does that cost you in your financial model?

This is one way to manage costs risk.The ways to own the property besides FHA & conventional loans is with private loans, investor DSCR loans (non owner occupied); seller financing, lease options, partnering with others to take the property down.....