DSCR only requires that the rents be equal to or greater than the PITI payment or the ITI payment if you go I/O interest only.You can use DSCR for a cash out refinance, Purchase and even a "Rate and term" which is when you want a lower rate or get out of a HML - Hard Money Loan, Balloon payment, Adjustable rate getting ready to expire/adjust (Recast).

10) Make sure all of the above, and more, are compliant with Fair Housing requirements, Fair Credit Reporting Act, Federal privacy laws, etc?

Kevin,I would avoid anything over 4 units for now because it opens up a lot of requirements when it comes to the underwriting approval.

Most of the houses that were sitting on grade were  completely or almost completely under water.

@Chase Cline Agree with the other folks here that one LLC per property is overkill and that a good insurance policy is the first line of defense.Each LLC will require its own federal partnership return, which makes your accounting costs go up.

@Marysue ConnellyI'm not a lawyer and this isn't legal advice.Currently, if you want to discontinue a lease that is expiring, you simply need to provide a written notice to vacate to the tenant with the appropriate notice period - our lease agreement states 60 days unless a lease is month-to-month, Colorado law typically only requires 30 days notice.

Bylaws and rules can often be changed by the Board (depending on what the higher documents require), while the CC&Rs and Incorporation docs are intended to be more difficult to change and often require a vote with a super majority of all owners to change. 

The difference is if you switched lenders and that lender has certain requirements that requires a renegotiation, then you might have a problem if the first lender doesn't.

REI requires $$$ and it's stated over and over again for a reason.

It is a simple process and requires a different filing with the SEC.