@Lakshay G.with all that @Stephanie Irto listed out it sounds like it may be a small hit to your score (less than 5 points) versus a major hit (20 points or more).

There may be different requirements for owner-occupied versus investor, but if it's for an investment property, you need to follow federal and state guidelines, including using lead-certified contractors if you disturb more than x square feet of space, etc.  

Of course, there's also compliance issues... the IRS will require you to report an annual 1099 reflecting the gross income your client earned for the year.Many of these requirements (and there are quite a few more) are waived if you're managing your own properties AND have less then 10 properties, so you have to weigh the risk/liability versus the reward.Being in property management, I'm a bit biased, but I feel that investors should use a professional, licensed property manager to manage rental property for the same reason we choose to use a CPA to prepare our taxes or a lawyer to represent us on legal issues.  

So I don’t know… 6CAP with no hassle and bidding wars versus 10CAP and homeland security… I’m sticking with my small multis, but it’s interesting to see things from a different perspective.

I would wager that there is a history here, I would suggest starting with that.  

So I don’t know… 6CAP with no hassle and bidding wars versus 10CAP and homeland security… I’m sticking with my small multis, but it’s interesting to see things from a different perspective.

So it comes down to more the tenant and how they care for themselves and others versus whether they have a pet or not.No legal advice given.  

Unfortunately these home warranty contractors can be 1-3 days later for servicing versus immediate.

Are there any "downsides" to taking this kind of mortgage versus a conventional mortgage (such as hidden fees etc.)?

I have never been in a live auction before, any pro or cons of live versus online?