They see other people looking at same house and it drives a sense of urgency for them to apply right away.I charge a $40 application fee and then run background checks at www.residentresearch.com for $26.00Charge a higher deposit than one months rent so that they are encouraged to pay last months rent and leave place clean at end of lease so that they get deposit back.

Jared,Take a look at these articles and I think you will be able to make a decision.http://www.themoneycommando.com/umbrella-policy-vs-llc-asset-protection-part-1/http://www.themoneycommando.com/umbrella-policy-vs-llc-asset-protection-part-2/ They dive into very detailed explanation as well as many risks/benefits & possible scenarios in which makes better financial sense.

., If that makes sense.

Do these numbers make sense or will I get a bigger dip in rent with a smaller communal space?

Do these numbers make sense or will I get a bigger dip in rent with a smaller communal space?

Or would it make more sense to buy the multifamily and re-sell for a profit and use those profits to buy my first rental?

This will give you and your agent a sense of direction as you'll have a clear sense of what your buying power is.

Dave, anyone can do it, in the sense that there are no licensing requirements (that I know of, anyway) to be a deal sponsor.  

This is an amazing process and makes so much sense, but I don't understand what happens directly after the contract is signed?

They're just a couple of tools that can sometimes make sense to use.