Rinse and repeat on a personal residence until you feel confident about building on spec or until you have the money to personally guarantee financing.

Profits come from discounts, servicing and guarantees along with obtaining deeds in lieu of foreclosure. 

It's "not a profit center," but a flat property management fee combined with first-year rent and maintenance guarantees makes me a little suspicious about years 2-10...3.

This gives you a guarantee of a minimal rental increase should the CPI calculation be low, something you can't control but with this method you have a "worst-case" floor minimum rate increase you can depend upon. c) If the Tenant objects to the "minimum floor rate", offer to counter with the addition of a maximum "ceiling rate" that the Tenant could be obligated to pay.

You just have to personally guarantee and you can start building the business' credit. 

We can guesstimate ARV all day long but that isn't a guarantee.  

VA doesn't guarantee a loan loan for more than the single family residence county limit.  

I find the better that we can educate owners and tenants usually the better relationship that we have.We will still have some owners that no matter what we do they are not happy.We actually have some of the strongest guarantees in the business.One guarantee we have: If an owner is not happy for any reason, we will waive that months management fee.We had an owner recently take advantage of this because, three of their fence boards on their fence that was replaced three years ago warped.Another guarantee that we have is if any time an owner is unhappy and wants to leave our property management company they can do so without any penalties.

Most will require that you both personally guarantee the loan.No entity and <= 4 unitsYou can use a conventional lender which is really any bank that will do a normal residential mortgage.  

To me, one tenant is worth the guarantee of less hassles and less expenses than with 2 tenants.