[Source: Federal Reserve Bank of St.

My understanding is that Encompass doesn’t specifically ask the dreaded student housing question on their app (I certainly have no intention of lying on an app); however, if I’m understanding you correctly, it sounds like regardless they reserve the right to inspect in the first 60 days and cancel if they determine it is a student rental?

I also make sure we're above our minimum reserve target, which is roughly $1-2k per unit.Call me simple but the bank account doesn't lie.  

 @Nathan Gesner Funny you should say that as that is what we did yesterday ..we actually lowered it to $1685 and it looks like we have a renter  hopefully  ( fingers crossed ).Income verified , credit score etc It’s a bit low for me but we can get the mortgage paid, the heloc payments and the roof payments and still put some cash flow in  reserves each month as we will pencil out a bit.

Two store fronts and two apartments. 

You also want to look at your liquid reserves because as you buy more rentals more PITI reserves are required and a Heloc can "Never" be used as an asset or for a PITI reserve.If you evver have any questions feel free to reach out I enjoy talking REI and I deal with them every day as  Banker.  

While that is probably true, it would also wash out the grocery store where his food comes from and the neighborhood would look like 

Optimize your finances by reducing debt, boosting credit, and maintaining strong cash reserves.

They have good cash reserves.

You also need 12-24 months of reserves so need to hold back some of your down payment money possibly depending on other assets that you may have.