I've gone through eviction court proceedings, ran thousands of background/credit checks for application, made numerous leases, dealt with repairs and whole house renovations when a few tenants nearly destroyed properties, and worked with property management companies on the HOA units. 

Gaining funds and creditworthiness via consistent employment might facilitate loan qualification.

Furthermore, if numerous investments are utilized from one debt (loan), the interest must be utilized for the same investment and filed accordingly.Business investment interest expenses follow the same general guidelines but do become more involved.

Additionally, maintaining clear and open communication with the tenant throughout the process can help facilitate a resolution.

I know Jon said that there are numerous deductions and allowances but can you name some examples please?

That is real estate ; ) Also, choosing the type of property, working with vendors on behalf of the owner to facilitate repairs and renovations is also real estate.

Especially now that you've posted your suspicions on a public forum, I'm not an attorney, but I've watched enough Law and Order that I could see there being the possibility of you being charged for "Aiding and Abetting" their crime by not reporting it or "Criminal Facilitation". 

This is rarely the case - it could be a bad deal for numerous reasons from bad sponsor, to bad management to bad economic conditions.

It does need the right product behind it to facilitate implementation, that much is true.Instead of refuting anything positive that I stated, you did however offer risks and other items to consider. 

Cash reserves have saved me on numerous occasions. 100% of properties break down eventually.