A well drafted operating agreement will address business planning above all else.

Quote from @Gregory Wilson: My post was supposed to address the cost of borrowing money.If you borrow $100,000 of your primary home equity at 7% and then invest it in a property that earns a 12% return, you effectively make a 5% return (12% income - 7% expense).

In my area I'm allowed to rent it out that way but I don't plan to get separate addresses because I want to be able to have the flexibility to remove the doors I'm putting in should I ever want to sell it as a SFH in the future.

Let me address your questions and provide additional clarity on key aspects:1.

Sometimes, you need all the time you have available to address any issues or concerns.

Get both POV.3) Return to your lender with the addresses you are interested in and get some term sheets. 

In many cases, it’s possible to address the issues and enjoy passive rental income again.However, selling may be the best option if the problems seem long-term or too costly to resolve.5.

If so, this seems risky as it leaves little time to address any issues?

Address is 13000 Plymouth Rd Detroit, MI 48227. 

See the chart from Fair Isaac Company (FICO) below: FICO Score Pct of Population Default Probability 800 or more 13.00% 1.00% 750-799 27.00% 1.00% 700-749 18.00% 4.40% 650-699 15.00% 8.90% 600-649 12.00% 15.80% 550-599 8.00% 22.50% 500-549 5.00% 28.40% Less than 499 2.00% 41.00% Source: Fair Isaac CompanyAccording to this chart, investors should use corresponding vacancy+tenant-nonperformance factors of approximately 5% for Class A rentals, 10% for Class B and 20% for Class C.To address Class C payment challenges, many industry "experts" are now selling programs to newbie investors about how Section 8 tenants are the cure.