You typically need 20% for the down payment and there are some credit score requirements as well. 

@Andrew Postell, I pulled it off the GRM site, which may not have updated ratios: "DSCR loans require borrowers to meet a minimum DSCR threshold, typically around 1.25...." https://www.rate.com/resources/what-are-non-qm-loansI spoke with a loan officer who said it may be lower now to reflect the market, so you may be right, but I am awaiting the approval and don't have the final ratio. 

MFH helps reduce vacancy expense, and you'll typically have a better ROI.

Well, we were able to gain great equity value in an area that we knew was up and coming.

If so, this is just a real estate loan, and it would typically be recorded in second position behind the first position purchase money, if allowed by that lender.

We also tell them when they’re going to get their security deposit back and what requirements they have, which are the requirements that are spelled out in the lease, but we highlight the typical problem issues like cleaning, lightbulbs, cutting the lawn, removing all their possessions,… Etc.

You typically get more bookings (go figure) but also pay a higher management fee.Condos are a dime-a-dozen right now.

If you want protection, insurance (umbrella policy), properly structured LLC (just placing in an LLC typically does not suffice), etc. is the more appropriate protection.  

Is there a way to avoid Capital Gains?  

Gain education with intention.