When on close on this first one, they are going to use 75% of rents - PITI = income (until your taxes are done, usually a full year)So your problem could be your DTI, and lenders may be ok with doing a few before you have proof of concept (full year or two of taxes) but they may be weary doing 5-10 properties in one year.So I would build a relationship with your banker, explain what you want to do, and get them on board from the get go.  

If your local area has the same demand as I see here, you should be able to set your own criteria - Local landlords will not lease for less than 12 months - they require parent co-signers, not a pet deposit, but a non-refundable pet fee - still responsible for any damage done by the animal - If you make your property as bullet proof as possible, there can be a lot of money to be made 

Also, once there is s history of someone else paying the mortgage on the sellers behalf for 12 months and the seller can show proof of that, the debt will not be used in dti calculations for the seller moving forward.  

A letter should be sent with proof of mailing.  

Keep it if it comes back to you as proof of due diligence.  

Make them show proof of funds.

You may be asked to provide some combination of the lease, the appraisal from that purchase, and/or if it's a new tenant proof of receipt of security deposit, to prove that the income is 'real.' 

Since you are assigning the contract, you will want to see a proof of funds and pre-approval from the hard money lender first.

No amount of education will make your first deal fail-proof.  

Hey all,So I have been doing a lot of tenant - proofing research lately as I get ready to jump into the world of Real Estate Investing and one of the things that seems a prominent discussion is flooring!