If the tenant wants to cut a side deal for a better looking faucet or light fixture, it's between the tenant and the technician.The day after a missed payment, notice of the late payment and fee is delivered.Notices and conversations are recorded as text, or at least text and e-mails re-cap what was discussed on the phone or in person.

It is not something to be entered into lightly since it is complex, but if your hire the right professionals, it is definitely doable and the upside is much higher than what you see with purchasing a house that is already constructed, not to mention the ability to tailor the home to your desired buyer or renter profile.

Would there be something that jumps out at you that screams "WARNING!

My advice is to tread very lightly.

Tile backsplash, floors, lighting, full bathrooms, cabinet pulls, etc. 

I was light on cash with all the deals I had going on at the time but knew this was too good of a deal to pass on.

BUT be warned, having a wife who is also into REI isn't all rainbows and unicorns, I know first hand as mine owns her own investment company and is an appraiser, there is pro's and con's. 

As stated, using other's money is a huge responsibility and shouldn't be taken lightly.

Lenders, you may be able to shed some light on this, what I cannot understand is how a $500,000 multifamily property with secured leases and history of positive cash flow is so much "riskier" than a single family home of $500,000.

Small and light and generally enough saw for anything except real large projects. - repeat the love for the oscillating tool.