In dire circumstances, this strain can escalate to foreclosure proceedings due to the inability to meet mortgage payments.

I use the following criteria: Applicants minimum requirements Policy:Applicant’s gross monthly income must equal approximately three times or more the monthly rent.Applicants must be employed and be able to furnish acceptable proof of the required income.Applicants must have a credit score at or above 600.Applicants must have good references concerning rental payment, housekeeping, and property maintenance from all previous Landlords.Applicants do not have a history containing evictions.Applicants do not have a history with felony convictions.

Hi as Steve and Jason pointed out it is very important to keep funds seperate.You will need an escrow account, if it's required by law, your account will need to be titled XYZ ESCROW ACCOUNT, if not so required, it can be any account but ONLY deposits and funds held in trust should ever be depoisited to this account and any withdrawl should be well noted on the check and on your books.If you comingle you accounts and you need paper towels to clean units, the IRS can simply disallow your deduction saying it was used at home since it was paid from a personal account or one of comingled funds.I too would suggest you formalize a business entity, an LLC probably.

There are not a lot of people I trust in this community but Pace is one I trust. 

When the person with the long term lease can't make their monthly payment, you keep their deposit and their furnishings in lieu of the rent payment and kick them out. 

Essential concepts for Seller financing comprise of an initial payment, interest percentage, loan duration, monthly installments, security, and early repayment charges.

I make secured and unsecured loans Loan amount: $2,000.00 – $20,000,000.00 Loan duration: 6 months – 30 years INTEREST RATE: 5.95% ANNUALLY Loan purpose: ALL Loan Type: ALL LTV: 85-95% NO PRE-PAYMENT PENALTY, FAST AND RELIABLE FINANCING.

Either one would be our primary residence, so down payment and closing costs are fairly the same.

DSCR/ rental loan will go off strictly the cash flow of the property, in this case it would be negative DSCR if the monthly payment is $4600 on $4000 rent. 

If your goal is to buy another property, I'd suggest a cash out refi over a HELOC so that your rate and payments are fixed.