However, you MUST understand the rules and laws associated with these types of deals.

Welcome aboard shovel; I was with you all the way through the post, agreeing with the bad FNMA rules, until I read the next to last sentence; And by the way.

The magistrate ruled that the landlord couldn't charge rent on a property that was not habitable and not being maintained (as required by law) by the owner.2.

The rule of thumb a lot of folks here use is expenses are 50% of rent.

One of my rules is that I do not want to invest in an area where my Property Manager would need to gun to be able to go into the neighborhood at night alone.

I've been buying REOs in Detroit and Indianapolis to rehab, rent and hold, but the 4-5 Fannie Mae/Freddie Mac property rule has just about maxed me out.

Welcome to BiggerPockets Alex.Here is a link to a very exhaustive thread that should answer most if not all of the questions you listed above.http://www.biggerpockets.com/forums/12/topics/19967-can-someone-please-explain-this-5-rule-to-me-?

So, the RESPA rules and terms don't apply.

You need to check your states laws on the rules of those LLC's.

This is weird because most politicians made these rules about taxes and business.