The real prohibitive costs come from the legal, compliance, and reporting requirements of registering a security.

Looks like a good service but they seem to require a minimum of a 100 doors?

You should require the new person to apply, pass your screening, and sign the lease.

LLCs tend to be beneficial for financing options if using hard money as it can be required depending on the program.

Because it's required by law

HI @Ananth SubramanianI have not been in your shoes but have read others that have and from what it sounds like getting the judgement is the easy part and physically collecting the $$ from the tenants is the hardest most impossible part.

Assuming 7.5% interest rate, the negative leverage would require you to put way more than 20% down just to break even.  

I also require additional security deposit and sometimes a guarantor if they were approved in this manner.I also agree that this situation sounds like a pattern not a one-time mistake or short term tough situation that caused this.  

Hi Grace, I have an amazing DSCR lender that has no seasoning period requirement and an amazing property manager (both a lot of my clients and myself have used!).

The lease should have a provision that requires the T to comply with HOA rules.