I would tend to put heavier weight on MF rentals than a SFH lot, building a SFH is riskier than apartments mainly and it typically would increase your income. 

You can often find sellers lying to buyers but very rarely to the IRS.So lenders and buyers tend to put more weight on actual transcript returns from the IRS.

In retrospect, I did put a lot of weight on tax rates, not so much because it was an iffy business model, more because it bugged me too much.

They are worth their weight in gold I saw this happen years ago.

Just finished paying off my student loans last month (huge weight off my shoulders), and am looking for more ways to become financially stable while owning my own property.

Everyone on this thread has made very valid educated points.I don't suggest this for a newbie living paycheck to paycheck; but if your in a financial position to bear the weight of some repairs and vacancy out of pocket, this may be a great long term play.Although we don't typically invest upon speculation, an educated person could make an assumption So Ca will continue to increasing in value over a long term period.

Think a list of qualifications that applies a weight to each trait:Credit Score - XPets - XIncome - XPrevious recommendations - XLength of proposed lease - XDeposits - XTransunion gives you a go- no go decision but the above may help you grade the quality of each potential tenant while being objective.   

Hey @Steve DellaPelle - I'm not speaking from personal experience here just my opinion, but I'd say that this depends on how heavily weighted each benefit is to you.

Myself with 6 inch thick tax returns and no NON commercial underwriter can really under stand them LOL  its frustrating no doubt. but it was necessary to protect the industry.as @Chris Mason  a great private RMLO is worth their weight .. we use one in Oregon for our deals here I would never go anywhere else.. been 16 years with same person..

And they really wanted to dive into my connection to the area.Now do I know how much weight a loan committee put on each of those contributing factors?