But others may have their preference to have as little skin in the game as possible.

As you can see...there are many ways to skin this cat.so, what is your end goal?

Banks will expect to see some skin in the game from their borrowers.

We are lending at 12-14% + points right now and will not go above 70% ltvCan it be cheaper yes, but realize it is very expensive $ and you have to have experience and skin in the game.

I have completly flipped the inside of the single family home (abated for espesdos, textured/painted new ceilings, painted all the walls, ripped up the carpet and installed vinyl wood flooring, updated all light fixtures & hardware in the home, and am woking to remodel that two bathrooms and the kitchen) and am building the Garage ADU.

Around here it's about $3/sf for hang tape texture, materials and labor.

I already require a security deposit so the tenant has some skin in the game.Any ideas for how landlords in this situation protect themselves?  

I do not invest in Vermont, so I have no skin-in-the-game per se, but I would point out, that what you're requesting will need two different types of loans. 

"Skin in the game" is, as good lenders know well, critical in reducing risk to lenders.

Unless you are from there or have very thick skin for volatile tenants, I would proceed with extreme caution.