I like to think of myself as an official partner of the bank at this point.- All assets are removed from your name which will normalize your FICO credit score-They will require quarterly updates on your books-5-10 year balloon is the norm but expect prepayment penalties- Lender holds 3 months of reserves Here was my breakdown when first exploring this: https://www.biggerpockets.com/...Properties 20+: PLAY WITH THE BIG BOYS:Flush with cash after the cash refinance and hopefully additional capital the number one priority is acquiring properties.

If so, it's true seller financing in that you take title at closing, the seller places a lien on the property for security, and you make payments to the seller. 

The purpose is to verify that the rent amounts stated in rent rolls are current and accurate, that the security deposit amounts to be transferred at closing match what the tenants have provided, that the number of occupants/ pets etc. in the unit match what’s in the lease, and that there are no other “side agreements”/ verbal or handshake agreements between the tenants and current owners/their representatives.

If the market is super competitive, then paying cash may be a great option to secure the property and then, as @Chris Mason mentioned, using delayed financing to secure a 30yr fixed rate mortgage after closing would be a great option. 

Also keep in mind in general crime is up, so think about security systems if it is a concern.Although this next statement probably won't make you feel better, but not all crime is reported. 

I would imagine it would be hard to secure anywhere close to those rates right now (they have gone up recently) even on your primary home.

Also, if I have a questionable tenant, I increase the security deposit.

You should have included prorated rent AND the security deposit as part of the contract. 

From there, as Charles mentioned, lenders will have specific requirements for liquidity and net worth to secure a loan.  

This is why the fed was buying all the available mortgage backed securities over the last year.