This also keeps risk from one deal separated from risks of another deal (whether slip and fall lawsuit risk or investment performance risk).  

There are many benefits to using this loan and we will list those below- however please keep in mind that a licensed mortgage originator should do a full analysis to see which renovation product is right for you and your family.Here are some highlights of the Fannie Mae Homestyle Renovation Mortgage: Perform almost any type of improvement or repair including luxury itemsImprovements and repairs can go up to 50% of the after improved valuePrimary residences, second homes and investment propertiesOne- to four-unit homes, condominiums, and PUDS30 year fixed rate mortgagesAs little as 5% downNo mortgage insurance for loans with 20% equityReduced mortgage insurance for loans with less than 20% equity versus a 203kAdditions and second levelsSwimming poolExterior spa or saunaBuilt in BBQ island and outdoor kitchenBuilt in outdoor fireplaceTennis courtsGeneratorand really anything else you can think of!

Having these conversations with the CPA as I converted my books has completely changed the way I think about my record keeping, how I take draws, how I may structure partnerships and investors going forward....Other than perhaps a good real estate lawyer, from my experience, a good CPA is critical to a young real estate investor's performance. 

The first appears to be performing.  

@Maria Bocanegra How is the unit performing out here?

Many investors plan on refinancing on a somewhat regular schedule, based on the performance of the property, resetting the 20 or 25 year amortization period every time.

The agencies we use to pull credit histories on applicants (TVS, RentCheck) perform "soft" inquiries.

-> I totally agreeMy personal preference is month to month lease.I'm not every tenant best fan since I perform drive by or walk exterior of properties at least twice a month

I don't like those types of arrangements even if allowed in that particular state.Instead you can still get full commission by having contract wording that the one person you represent is your client and the unrepresented party or the one you do not represent is only a customer that you are performing ministerial acts for and not fiduciary acts. 

I have one of my ex-homes in my rentals (located in Claremont) and it is my worst performing rental by far.