It was already perfectly set up for it with almost all water hook-ups in place already (wet bars, previous basement kitchens, etc.) and I mainly just had to remodel and put a few exterior doors in place to separate areas.

I'm also trying to keep my eyes peeled for properties that require some rehab (kitchen/bath/flooring/etc).. not major projects.Details: -I have set aside $350k of expendable cash, and I'd like to leverage this. 

In most states the seller is required to disclose any material defects they are aware of.

Different ones require you to go to the decking, others do not.Personally I'd always suggest to take things down to the decking. 

Collect a security deposit when the lease is signed and require payment of the first month's rent at move-in.

Not sure if the answer isa) nothing I can do about it, b) put a wireless water meter to help detect leaks on it (how does this work for a rental where the internet is theirs?)

Those aren't always nice and could range anywhere from $500-1% a year...that's for sewer and water or flood control improvements. 

This is still a very tricky area for lenders as there are not many "industry-standard" tried and true rules - many DSCR Lenders and buyers of these loans are still wary of the SRO model - that being said, it is a lot easier and more flexible to underwrite on an acquisition if you are buying and the property could be utilized as a LTR / MTR or STR as that allows for a more tailored projection (as long as the property doesn't have unique or altered characteristics that would require it to be a SRO / MTR)

If the city is ok with STR's, I then check to see what permits are required for STR operation. 

To comply, we asked the husband to complete the rental application and submit the required documents, including ID, SSN, and bank statements.