The requirements are not difficult to hit "On Paper".

Property manager sucked, spent $20k repairing it after tenants destroyed it, Next thing you know I am in it for $60k it on paper get $1200 in rent but good luck getting people to pay.

The guest became defensive and pointed out that 7 rolls of toilet paper (12 guests over 4 days) was not sufficient (lol) and they had to buy more tp, paper towels, and trash bags.

If price goes down, I still have the paper loss whether I have paid it down or still have the mortgage.

Should, at that time, you opt not to renew, then serve the proper papers and get on with life.

remember payments may only be 400 a month at best.. 6 months reserves is a whopping 2400 dollars.. so someone theoretically with less than 10k in cash could get into these properties.. this William I personally think is highly dangerous for lender and for buyer... its not losing the 10k that's nothing its getting your personal credit trashed when you can't make the payments because you lost all your cash.IMHO if you want to be in the rental game you need 20 to 30k liquid at anyone time that you don't have to borrower etc.. this will insulate you from taking a loss. as you build units of course its not exponential but you need a base.And since this is not TRUE cash equity only paper equity there is no hope of selling them for a profit or what you have in them.. 

Give them a copy of the manual to show what minimum temp settings are from the manufacturer, put it in writing and get them to sign the paper. 

Buy a cheap house in a tough area, the numbers on paper may look good, but you will have higher operating costs and more headaches (generally speaking) as opposed to buying a solid house in a good area.

I've just done the work myself: get a judgment, file to have wages garnished, place liens on any property they may own (I've had some people come up as being on joint title on a property).Some people will sent up a payment plan as soon as the sheriff shows up to serve them with papers because they're so embarrassed!

Yes, this lender might see all kinds of deals PROJECTED on paper, but what about business returns showing the actual results?