Because I am personally taking out and guaranteeing the heloc, I have to qualify to repay it (and provide ALL of the documentation as proof -w2s, tax returns, pay stubs, etc).

After 90 days the burden of proof is on the residential tenant.

The lender's I've used in the past have wanted proof of DP funds prior to closing and they required a certain percentage of downpayment to come from my personal funds.

I just posted the below in the other discussion re RealtyShares in case anyone is not following both discussions:RealtyShares was structured in order to make the investment of the investors (such as me) "bankruptcy proof."

I work with owner occupants like every other LO; on top of that I work with real estate investors - even though these loan files are often 2-3x as much work - specifically to correction-proof my practice.

So, you may likely get a bad tenant and they may destroy your entire profit margin by causing you to evict them, and despite an eviction, they may be judgment proof.

Once you start getting higher than that ($10MM+), proof of funds and a listing agent's presence are extremely common for obvious reasons :)Don't get too caught up on the listing agent's knowing more about the homes than the buyers agent. 

They are now saying they had a verbal contract with the prior landlord, who apparently said they had could have a 3 year lease (not sure why when it clearly states 24 months on the lease)I know verbal contracts can be legally binding but what proof do I have?

Is one more recession proof than the other?

Last thing would be to give them your Personal Financial statement, 3 year tax returns, current proof of income and schedule of RE.