At least then I would be the only “innocent” victim. 

Again, other might feel differently here.b) Skin in the game: as a conservative investor, I understand that the dirty secret of industries that the waterfall compensation is in the line with me and incentivizes sponsors to take more risk.

So, I shifted to providing owner-finance SFR bump the cash-flow to $300+ because the goal is cash-flow in markets out of my area/state so I can sleep well at night and ensure my team members are well compensated for their efforts.

Now those fees are distorted and, in all likelihood, there will be across the board increases in costs to compensate. 

Also experience is a huge factor here and given that you have completed 2 commercial projects that will definitely compensate for the lower FICO. 

It may get murky if you were to start taking compensation for an outside business relating to financial advice, but for selling/buying real estate on the side- it is completely fine. 

I called the realtor who drew the lease agreement for him and found more victims.

Set up some surveillance and/or agree to compensate neighbors for eyes on the property - you don’t want her trashing your property on her way out.

Best case, they charge you much higher interest rate, mayeb over a shorter term, to compensate for the additional risk. 

I got a new carport and the tenant, who didn't carry comprehensive insurance, got a totaled van with no compensation.