I settled on a condo unit for a few reasons: in my target town, an affluent college town, I cannot afford a house that would be a nice enough neighborhood to attract the type of tenant I want.

If they're not willing to that is a also a huge red flag.Overall, I believe if a borrower focuses on obtaining a level of comfort that is based on knowledge and transparency first and foremost that that can eliminate a lot of the riff raff.

If they were forced to have an occupancy inspection prior to move in and install smoke detectors on all levels of the home and perhaps, in all of the bedrooms, it could make a difference.

I think more of what you are asking is how the occupancy level and accuracy will affect what kind of loan you can get and how much you will put down and how much the debt service will be.A regular lender at 90% occupied maybe 6.5% fixed at 75% ltv.If you get into value add deals you will pay points and a much higher rate to fund and lower LTV.You will then need to refi after stabilizing about 1 year out.So you build the carrying costs into the amount of time needed.The books will determine the verified income and actual costs.From there you run your desired cap going in and that tells you around the price you want to pay.Now if the books are out of normal standard margins you have to ask yourself why that is (deferred maintenance,undisclosed credits to tenants,disguising fees paid to themselves in other line items,etc.)

I just got off the phone with my nephew in college.

Illustrating where investors are willing to park their money and collect.If you are a lower level investor and have time to hunt and pick on deals then sure you can still find deals where you make high returns.

Look for the ones advertising aggressively on Craigslist... we are currently filing papers to make me his unlicensed assistant which will give me realtor-level access to the MLS.

These would include college towns and cities where either industry is expanding or tourism is increasing.

I am hoping that the community can help me with a current dilemma (this time I figured I would ask before I just go charging ahead like I have done in the past).I own a multi-family in Boston and rent to college students, typically 3 roommates.

Throw on top of that your involvement in the tenant selection process or actively engaged in rehabs by purchasing fixers that you make ready to rent.It is not necessary to manage your own properties, but it makes it easier especially when you only have 1 or 2 properties.Bottom line is it is a judgment call what level of activity constitutes "regularly involved."