You may pay half a point more in interest but can often close for a set amount, usually <$1k. 

@Todd Hendricks usually location. 

@Mario FurmanczykIf cash flow is your goal and you can handle the extra demands of C neighborhoods then this is a valid strategy.

This is beneficial because you can use this extra cashflow to reinvest in another property to create a snowball effect until you max out with Fannie Mae.

They are usually trading 150-300 basis points higher cap rates than an apartment would and would be valued as such.

What is the city or state law for pets, (usually it's something like no more than 3 per cat, dog etc.

I reckon the "principal-only" repayments (rather than the more usual "interest-only" repayments variation) is the BIGGEST plus for this deal!

I did notice that the post said most portfolio loans have a higher interest rate typically than what you'd get with a conventional lender, and that they are usually shorter in term or have a balloon payment.Based on my personal situation, I shouldn't have much of an issue getting conventional financing for the first few properties.  

I agree with your tenant that 30-45 is a much more reasonable window; after all, you're only talking about an extra 2 weeks.

I usually highly suggest them getting renters insurance but if they want to take the risk that's up to them.