Through inaction (waiting til term)I am guaranteeing a loss of 2-months rent ($1900).

Buying a property does not guarantee a profit or proceeds, Selling a property may result in capital gains.

2) If we purchase as an LLC the bank wants 35% down for 30yr, 5/1 ARM or 7/1 ARM and personal guarantees.

I need people in deals that understand real estate is not guaranteed and there is the possibility that you'll lose money. 

Taking on a fixer-upper can seem like a way of guaranteeing this, which is why it’s become a very popular option with people who can’t afford a decent house in a good area.

NNN is just a step lower than ownership, but without the risks of a mortgage, personal guarantees of debt, local market/government forces on property, etc.

And yes I would have to agree that going by the book does NOT guarantee a perfect rental situation.  

But, even if you could somehow guarantee you'd be bringing 8 new checking accounts to the bank from future tenants, I don't think a bank would slant their normal underwriting requirements for it.

Now  The likelihood of me ever having 100 million net worth is slim to none, but I guarantee you it’s 1000 times higher for me to get there then the person working 40 plus hours a week and buying their lottery tickets.   

I use Ben Ritterspach at Byas Law...attorney of record for Great American Title Agency...he drafts all of our notes/mortgages, resolutions, guarantees, deeds, etc...glad to make an intro.