If they want to eat, have electricity and hot water, they have to get off their butt and earn it.

Default rates on consumer real estate would be frowned upon by regulators...for the exact reason you stated...jacking up the rate so that interest eats up equity.

Tenants can eat up your cash flow very quickly out of spite.

That's going to eat into my cash flow for sure!

You probably aren’t going to get much lender credit at a 4.25% interest rate, so those costs/fees will either have to come out of pocket, or be tacked onto the loan (eating into that equity).

The last 10% will grit their teeth and hang in the band of earning enough to eat and survive, but most of the agents in my market (and probably everywhere) are starving.    

However, rent and other bills are eating up her money.

I understand unknown expenses happen (capex) and I know they will eat up my cashflow, but that is a risk i think can be taken with a high W2 income.

The low down payment + PMI + property taxes seems to be eating me alive.

When I think LLC I think legal protection and the State of California’s $800 annual LLC fee that you will pay (that eats into your rental).Is a LLC worth it?