If the tenant pays half of the rent on-time, you can only charge 10% on the remaining balance. 

I’m looking for some feedback or advice into this process.Thanks in advance for the feedback.Art Hey Art,You are going to be paying 8-10% for the construction loan, and might be decent amount down.

Sale-Leasebacks have inherent challenges because the tenant/seller is incentivized to market the property in such a way they get they price they want, but if the entity who signs the lease is weak and there's no personal guarantor, they could stop paying rent the day after you close leaving you high and dry with very little legal remedy.I don't know your market, but in my eyes, any 10% cap offering is either an extremely weak tenant OR a tenant that has very little term remaining with no plans to renew.If I were, you I would very seriously consider how much I like the real estate and what my odds would be of refilling the real estate with the same or better rent and/or a better credit tenant once this tenant goes belly up.

Sorry, but crime pays and it pays very well.

If you miss the HOA payment, which is different than the transfer fee, the person on title will be notified to pay up.

The Theory is this:(Quoted from VA.org: Those who apply for a VA mortgage with another veteran (a VA “joint loan”) may be permitted extra units for business purposes, which means your multi-unit property could have more than four units.

Do you want the seller to pay closing costs?

I am paying for that now.I will also do all of the other due diligence prior to investing - experience of the operator, referrals from those in my Community and network who have invested with the operator, responsiveness and other factors - but proof of effective communication will remain a priority for me. 

Offer some incentives like paying for their move or covering the security deposit and first months rent at their new place.

Long term tenants in place currently paying below market rent at $1200/M.