We have sparked up conversation with a handful of people and they all usually seem to think it’s really cool what we’re doing and have always left glowing reviews, so I don’t think it’s an issue.  

That makes sense but there is more than one way to skin a cat so to speak.

No.From a lenders perspective typically they want to see you put money down, otherwise you aren't putting any skin in the game. 

As a lender, we wouldn't touch a deal where the investor does not have skin in the game.

I see now that it would behoove me to have more skin in the game, in order to show any contractor(s) that I work with that I am not out to waste time. 

My options are 1) to go with the current appraisal and leave more skin in the game than I wanted to, 2) cancel out the loan app and resubmit in a couple weeks or 3) start from scratch with a different lender.What would you do?

Here are my (thus far unsubstantiated) concerns:  (1) once they turn 21 there will be irresponsible use of alcohol involving visitors to my property; (2)  they are too immature to respect other peoples' property and will not take care of the apartment; (3) when they break up in 3 months, I'll be back to square one - this time in the dead of winter.I could do a guarantor, but here in NYS we cannot collect any additional deposit beyond one month's rent, so I would have another person to seek damages from, but they would not have any monetary "skin in the game." 

., I couldn't do it, no skin in the game and they want up to 40%, no way, that's a partner so I might as well just have a partner right. 

Some simple things to think about:Lenders want you to have skin in the game. 10% plus closing costs.

It's you equivalent to having skin in the game.