But using a year lease will secure the income, or your right thereto at least, for an entire year.

As someone with limited capital who is looking for a MFR for his/her first purchase, I don't really see how this financing option could be a bad thing; especially if, like me, your focus is on cash flow.If I pick up a MFR on a 5/1 or even 10/1 VA loan, recycle the profits to bulk up reserves and equity then I'm paying less to make my property a more secure investment.

I was wondering if by law I am allowed to take what they owe me from their security deposit.

Tip: Only accept a money order or cashier's check from the applicant for first month's rent and security deposit.

And they also must pay 1 months rent for securing new tenants (half goes to the agent that brings the renter on the MLS). 

I do not see the bank loaning you the money without a security interest being filed on the property (mortgage). 

She secured an agreement to advertise the property at $580,000 for 30 days and got it out to her list. 

My internal alarm is going off telling me that there’s something that has to complicate this as it all seems too simplistic.Thanks in advance for any input!

It is hard for someone who has a voucher and they only have so much time to secure a lease before it is revoked.It's a very unsettling experience for someone who knows if they don't use the voucher they could end up homeless.

We do use a property manager for some that are too far right now for us to deal with, but they take almost as much time and effort as the ones that I self-manage, so I'll take those over when I have the time to build the proper systems there and have time to screen the tenants myself.If I found secure investments that could substitute for the income from our rentals without the hassle of dealing with tenants, I would consider it, but it's difficult in this low-rate environment.