A 40,000 dollar unit in my area would typically only draw 3-5 hundred a month rent at best.

Then it does turn into a normal loan that you cannot draw from.  

7) Are there any other considerations that could bring their points or interest down?

What all do I need to take into consideration when I am thinking about tax time? 

All contracts, options, or other devices not based upon a substantial consideration, or that are otherwise employed to permit an unlicensed person to sell, lease, or let real estate, the beneficial title to which has not, in good faith, passed to such party for a substantial consideration, are hereby declared void and ineffective in all cases, suits, or proceedings had or taken under this chapter; however, this section shall not apply to irrevocable gifts, to unconditional contracts to purchase, or to options based upon a substantial consideration actually paid and not subject to any agreements to return or right of return reserved.I regularly turn in these frauds.

Now I have some considerable cash and want to start buying some rentals.

@Lois Ginter Sorry i was wrong, she is not on workers comp, she draws retirement from Coca Cola that she used to worked for number of years.

If the property is higher end, I have seen as high as $10 PSF for top quality wood so that could be a consideration to preserve value upon exit.

Im an agent and investor, and it is hard for me to draw the line between the two.

After they are finished, they refinance the home (which reduces the cash flow considerably) but makes you liquid enough to purchase more homes and rapidly expand your rental portfolio.