If you have good credit and your other 2 friends have terrible credit...then no, they should not go on the application with you.  

Refinanced at 5% isn't terrible, but I would still try to maximize income by buying more investment properties while reducing expenses (by paying off loan and controlling a budget) as much as possible. 

Not terribly realistic, though.

@Robert Collins not terribly surprised Clayton Morris said that.

November and December aren’t as terrible weather wise as you would imagine in Cincinnati however I don’t want to do turn overs during these months year after year.Thanks for any advice

The cops won’t do anything, squatters rights in Vermont are a terrible joke.

@Daniel Curtis you are basically right in your example to me. however, that would be a terrible deal in my opinion. that is way too thin to waste your time on. furthermore, i’ve done two refis this year and both had about 10k in closing costs so don’t forget to factor that in too.

It's a terrible idea to depend entirely on the tenant, especially for an issue as serious as you described.

Also CAP rates are area dependant so a 6 CAP is great here but terrible some where else   

Then yes, terms on 85% ltv investment properties are terrible.