I bet you have a boat load of equity? 

I bet it is beautiful in Utah right now!

I think they know something, they are betting on a gov. bailout!

So, if you can get access to the MLS, that's your best bet.

it's going to be tough to get any kind of advice like that here, most people will simply say 'speak with an attorney' if you plan on buying buy/holds your best bet will be LLC.

If Cory could only show those dumb real estate agents how to sell houses in sixty minutes, I'll bet he'd be RICH!

Your attorney is correct, and the bank is not obligated to say no, my bet is that they actually said no, as in no you can't do that, under them terms of the deed of trust.

HML's generally prefer loaning to entities since it helps avoid compliance, but this is a just business decision on their part.I agree that a HELOC from a bank is likely your safest and most cost effective bet.

Any investor should use extreme caution with interest only payments, as basically they are betting on appreciation and a falling market would hurt that plan.  

After reading these posts, it seems your best bet is to have everything spelled out in the lease and make sure they understand everything and make sure you walk through the property, explaining things to your tenants, asking them what kind of skill they have i.e. changing a chain on a toilet, shutting off water, changing light bulbs etc.