As I am screening applicants, one of the applicants has low credit score (500+), no bankruptcies, no evictions but has late payments.a) Tenant is willing to put down 1.5 month security deposit (state allowed maximum) and 4 months of rent in advance.

Account ClosedI would recommend getting your credit score up, first.

Hello Aaron,There is much cheaper hard money available than 15% + 5 points depending on credit score, experience and liquidity.

Some apparently had no idea their credit scores were about a hundred points lower than our criteria.

As you can obviously tell, it's incredibly capital intensive to invest here.

We all agree its the best decision we ever made.So find some like minded people, everybody should know which end of a hammer to hold, everybody should probably have good credit scores, and you should be able to trust everybody you are involved with.Writing that got me more excited for my first blog entry!  

Bank want 2 years tax returns, don't show a lot cause we own a lot of rental property, and my financials, which are fairly strong $2M net worth and 740 credit score, but a big black eye with a bankruptcy back in 2011 due to being over leveraged on rentals and the market crash.

the tenant stays...SCORE!

It's customization is incredible and in most cases it is free!

I just did one with incfile.com and it was less than $100 on top of the state filing fees, but the operating agreement that came with it is incredibly broad and vague, and I imagine would in practice be of minimal use in the case of a serious disagreement among members.