I know your involved at a high level with Board of Realtors and state regulators .. 

The 2-3% points in extra cost are worth it if you plan on using as I described above because the use would be for a few  months at most and due to that short term use you can survive a rate adjustment up.But, if you have no plan to payoff the debt like when using for a down payment on a long term hold why pay the extra cost for flexibility and have the additional risk of the adjustable rate with the amortization looming when you can get a fixed rate second mortgage. 

It seems like the perfect place, BiggerPockets, for finding people who are like-minded, asking them questions, and learning how to become a future investor.I believe that no matter how unforgiving the market may seem, the right tools, knowledge, and preparation can help minimize risk and create opportunities.

Anything beyond that makes me wonder if he might stay too involved.

There’s no risk and all reward because if somebody can’t provide ID, they’re not going to be able to rent from me anyway.  

They financed 100% of that transaction, and I took on a huge loan - a huge risk for a broke guy like me.

Being proactive ensures you’re always a step ahead, minimizing risks and keeping your business running smoothly.Example: Imagine you implement an outdated tenant screening policy that inadvertently violates a new anti-discrimination law.

The question is mostly a personal financial planning question and it depends on your preference and what balance of risk and access you'd like and would be comfortable with.

.- If you build a good/great portfolio, you will have multiple exit options you can evaluate annually or whenever.3) Don't overleverage beyond your risk tolerence.

You won't find a deal where you live for free, but if you can live in a great neighborhood at a reduced cost of living that is a nearly risk free way to get started in real estate.