This is a common term used for someone whose primary role in the partnership is to secure the loan, commonly through their financial wherewithal of their net worth and liquid capital.

@Noah SchulzThe previous owners' failure to disclose a back-paying arrangement complicates the situation, potentially leading to tenant disputes or security deposit concerns.

Quote from @Jonathan Greene: All of your posts are sales techniques to drive business to you and you dial it back by making it like I was being mean to you.

I have several questions - imagine being able to split up property ownership into tiny pieces or having every transaction out there for everyone to see, all secure and tamper-proof.

Instead of increasing rent, I would look at having the security deposit increased to protect against wear and tear.

Your conservative approach to estimating income provides a solid buffer, and the strategic location adds a layer of security.

We require first and last month's rent and security deposit prior to move in.

Cons are the liquidity event that your parents will have to do to purchase the home (I assume the funds are in some sort of investment today so there's likely some tax ramifications on cashing those securities).

My biggest hurdle has been securing financing to work on multiple projects simultaneously.  

There’s no specific IRS rule against refinancing a cash purchase and deducting the interest, as long as the property is used for investment purposes and the loan is secured by it.