You will save a lot more in expenses getting a traditional hard money loan and using your own funds for the downpayment and closing costs.

When I read things of this nature, what comes to mind is, did the person writing this actually do that themselves.

Converting your single-family home into a rental property involves several considerations to protect yourself and ensure smooth operations: Establish an LLC:Liability Protection: Holding the rental property in an LLC can protect your personal assets from potential lawsuits related to the property.Tax Benefits: An LLC can offer tax advantages, such as pass-through taxation, where rental income is taxed at your individual income tax rate.Insurance:Landlord Insurance: Ensures coverage for property damage, liability claims, and loss of rental income.Umbrella Policy: Provides additional liability coverage beyond your landlord insurance, offering extra protection.Deductions:Mortgage Interest and Property Taxes: Continue to deduct these expenses.Depreciation: Depreciate the cost of the property over 27.5 years, excluding the land value.Maintenance and Repairs: Deduct costs related to maintaining the property.Property Management Fees: Deduct fees paid to the property manager.Filing Taxes:Schedule E: Report rental income and expenses on Schedule E of your tax return.Separate Accounts: Maintain separate bank accounts for rental income and expenses to simplify bookkeeping.Lease Agreement:Solid Lease Terms: Ensure your lease agreement is thorough, covering rent amount, due date, late fees, maintenance responsibilities, and eviction terms.Legal Review: Have the lease agreement reviewed by a real estate attorney to ensure compliance with local laws.Tenant Screening:Background Checks: Perform credit, criminal, and eviction history checks on prospective tenants.References: Contact previous landlords and employers for references.Property Management:Regular Inspections: Schedule regular property inspections to ensure it's being maintained properly.Maintenance Fund: Set aside a reserve fund for unexpected repairs and maintenance.Moving Out of State:Communication: Maintain open communication with your property manager.

now for sure the tenant is being a typical tenant and why me personally dont like to deal with tenants the juice is not worth the squeeze.  

But this model would help in getting together the necessary funds (especially for a down payment and minimizing the potential interest on a loan), while bringing in legal complexity.

Personally, I had one experience where my Lender wanted the LLC to be within the state where the property was being purchased.

I would certainly rather have the tenant pay $3,500 and personally pay an extra $100-$500 for a whole new unit. 

On a personal note, I enjoy the conversations I have with noteholders who reply to my marketing, and I enjoy being part of the secondary market which supports seller financing. 

buck stops with meindex funds and REITs: low control, high liquiditysyndications - ? 

If you are thinking of creating a secondary market of some sort, you'd be the third person in the last 5 years that I've talked to and answered this exact question.