The banks are allowed to be more strict on it if they want to though.  

2.Is there a general rule on determining the amount from the monthly rent allocated towards down payment or is that strictly up to Landlord/Seller?  

Usually two, three, or four families are at least partially valued based on other recent sales in the area.  5+ units are strictly based on cash flow.  

You've had no turns no lost rents and bascially I bet not much fixing in the house while he's lived there.YA go ahead and be strict and then file for late or non payment and get another tenant that will pay late and start the whole thing all over again.. 

For example, if you want to wait til you have renters in to do routine maintenance such as gutter cleaning, you could deduct it.

LLC is strictly for protection.  

By informing them you know the routine they should respect you for that and comply.

There is no wholesaling (sorry to that group) this is strictly buy n hold or flip. 

You have to be strict, almost like an algorithm.

I would be able to borrow as much as I wanted by showing it is factually a loan, but then any income they earn from said interest would be taxable, which is strictly speaking what they want to avoid.