@kristal the 1% or 2% rule is the amount of rent you should charge your tenants compared to the amount you owe for the property.  

I explained that to my knowledge it could give landlords a reason to either not rent to him or charge him-up-the-back-side.

So you might run into a situation where you buy the condo and a year into it, they charge $3000 to each unit owner to cover replacement.

I just had one where they wanted to charge the buyer an extra $250 to check for any local municipal liens.

Personally, I'd just charge him rent as per normal, then have him invoice for the work that he does, and keep all transactions clean and clear. 

., the court found that in determining unconscionability, the trial judge may consider: 1) the amount of the proposed rent increase; 2) the landlord’s expenses and profitability; 3) how the existing and proposed rent compare to rents charged at similar rental properties in the geographic area; 4) the relative bargaining position of the parties; and 5) based on the judge’s general knowledge, whether the rent increase would shock the conscience of a reasonable person.In my opinion if you're basing the increase on market conditions and not on trying to take advantage of anyone or increase the rent as a way to eliminate a tenant you'll probably be fine.

Some have said we need to be relatively low on monthly rent given the short period, others have said we can charge more because renters usually want long leases.Any particular marketing approaches or lease terms work well with 6-month renters?

That lender will probably charge 12%.  

Some want you to have $15-25k (depending on the deal) in the bank before they will fund you, others will charge you an astoundingly high application/origination fee to get the process started, others only fund LLCs, while others want a portion of your profits.

Its not like a bank loan were interest is charged on borrowed funds.. some of the bigger WEst coast HML because of massive competition for borrowers are having to resort to only charging on extended funds.