There are some tax rules to be aware of when pursuing these strategies, but those are easily managed if you're aware of them and have whom to consult with when a question arises.

I believe most claims arise from contractors and liens, but the title insurance companies have cleaned up the standard exceptions to avoid these issues.

Many times there have been cleanliness issues, etc that arise from the overcrowding.

You need to educate yourself on the process of how every job is performed so you can identify issues as the arise and correct it early before it becomes a big deal to do so.Most times you do get what you pay for.

When a problem arises, he gets the phone call -- not me.

The Agent is party to this contract solely for the purpose of enforcing rights under this paragraph, and it is understood by all parties that the Agent is acting in the capacity as Agent for Landlord and Tenant(s) must look to Landlord as regards to covenants, agreements and warranties, and that Agent shall not be liable to Tenant(s) in regard to any matter which may arise by virtue of the Lease Agreement. ............"

If you keep it in your checking you forgo your opportunity at saving lets say 4-5% on your HELOC from mortgages or balances you're currently paying on or you can utilize the money in an investment and earn some interest but the problem of liquidity always arises as you'll inevitably need some money in a readily accessible area you can get a hold of within 24-48 hours via wire/withdrawal etc.The LOC/HELOC (depending on the terms of the product) accomplishes this as you can withdrawal very quickly and or wire the money out where you need it while accomplish the high opportunity use of your money.

If the place needs any rehab or any major issues arises, your negative very quickly.F!

To your question about income -- given the constraints that can arise in a group tenant situation - I would think that each individual tenant would need to meet the 3X rent rule -- that way, if there were say - 3 tenants -- if two had to move to another city -- that in the worst case scenario the last person standing would be able to afford the place on their own.  

HUD investigates discrimination complaints and those complaints can arise years after the alleged discrimination occurs.All that person has to do is visit http://portal.hud.gov/hudportal/HUD?