@Ryan McGlasson it shouldn't be if you live in CA let me give an example to explain better.If your CA tax rate is 10% and let's say you bought property in CO where the tax rate is 5% and the property made $100. 

For example, can the bank tell us, “you need to occupy whichever apartment you can make available first.”

Which means, if your RI business partner is going to be paying the mortgage, you should have some way of periodically checking that the payments are actually being made on time (for example, online access to the account if it's an institutional lender).After all, regardless of whether it shows up on your credit report, you'll likely be personally guaranteeing the whole amount of the loan which means if your business partner dies or walks away, you could be responsible for the entire loan.

Taxes are filed monthly by 20th of the following month (example: May is due by June 20).

Do they say that about Bankers, Grocery Store Owners, Doctors (well maybe doctors..bad example) plumbers, etc?

I hear people that say that about my market in Northern Colorado and the actual data does not necessarily suggest that to be true.For example, here's a chart showing the price per square foot of detached houses compared to the price for attached houses over 20 years.

For example I brought a breakeven property in a San Francisco high rise late last year because it was selling at a discount to comps and the location was awesome.

Other examples of overlays - needing 2 years of rental history, having a minimum credit score, waiting 6-12 months for you to be on title.....ALL of those are overlays. 

Example: Directly related- Replaced carpet in 1 of the rented rooms : $500 Indirectly/whole house- RE Taxes $6,000 but only $3,500 is business related based on the allocation. 

BTW – buying a few $80,000 houses in Memphis (for example) is way outside my comfort zone.