Quote from @John Williams: I recently bought a home that has an attached dwelling unit where Im planning to move in and rent out the main unit.

Getting into real estate doesn’t have to mean having millions in the bank.

Get a bank statement to cross-reference their paychecks as most employers now direct deposit.You'll also see if they have a savings history or are living paycheck-to-paycheck.If they are not paying rent right now and have no savings, how well do you think they'll be able to adjust their budget, so they can pay rent on time?

If you want to put the deposit in a out of state/online bank, then you will have to furnish a bond.  

Not the nicest areas, but nice enough.. and I would be looking for minimal cashflow, banking on appreciation. 

I then suggest setting up a bank account where there is auto pay.

You technically CAN break it up on Schedule E; however, it is not the best thing to do for audit purposes or an actual breakdown.You should have an operating/partnership agreement together and you should have a dedicated bank account for the property.  

But basically with a construction loan you will need to have considerable cash involved - most costs need to be paid for and then the bank will reimburse at certain checkpoints.You may want to start with some smaller value adds inside the existing house to maximize rent from the house hack. 

Or are you actually talking to a bank about buying the note so you can see the notes and credit on the owner of the property?

Bank loan How did you add value to the deal?