No, we would be bringing some money to the table for down payment, closing costs, etc.. 

A single bad tenant will cost you thousands to tens of thousands of dollars.

I am not as concerned with cost and would prefer quality and transparency.

**Security Deposits**: How should I handle security deposits for medium-term rentals?

HI Tomer, you can definitely secure a fixed second or HELOC on an investment property.

Why would he prefer a $1500/mo (150k-purchase cost) 2 BR 2 BA 1000 SF condo over a $250k 4 BR 2-3BA 2000 SF house where we rent out half and live for like $500/mo?

Also, please bear in mind costs; some states could have annual fees for an LLC in the hundreds of dollars (e.g., California),  whilst other states have no such fees (Texas).

For me I’ve found the lower cost to entry to be more desirable in the residential market.

A simple mistake can cost you more money or time.Here's a pretty good guide: https://www.clarkcountyohio.gov/DocumentCenter/View/5210/CCO...

As the seller I would pay for the energy audit, do the analysis on the work to be done (cost vs savings) and then market the home with a prepackaged improvement contract that would meet lender guidelines (solar, EE windows, etc). 45 day close to allow for enough time to do loan and obtain permits, occupancy COE+2.