If the HOA doesn't like something the tenant is doing, you may still be liable for the fines (which can potentially be quite excessive). 

To be fair - nothing has been too excessive and you make good points.

After splitting the average price three ways, increase it 15% per person to cover excess use.

Now, here's one important point I've learned over the past 7 years - never do business with ONLY  one bank (unless you are only buying a property or less per year) - you never know when the bank will lose their appetite for cash out refinancing or construction loans. 

Taking depreciation is not an option but a requirement.Furthermore, why wouldn't you want to take it.The loss in excess of income either offsets your W-2 income or is carried forward and used when you sell the house.Depreciation recapture is taxed at a minimum of 25%, however, the rental loss or suspended rental loss can be used to offset income at the highest tax rate.

Most C+/B assets start out in the 6% to 9% cash on cash range initially IF you're aiming for well operating assets that don't pose significant proforma risks.Personally, I use the RichDad philosophy of build businesses that generate enough excess cash flow to allow me to buy income producing assets.

I go to the bank and get them to type a letter that on this date I have funds on deposit in excess of $150,000 in my accounts.  

As far as HUD and FHA would go along with having commercial aspects was up to 4 units, the thinking is that one unit would be owner occupied and renting 3 or fewer units out would lower the housing expense which met the mission of affordable housing. 5 units became more of a business venture.Later, they adopted the non-owner occupied loans for 1-4 units, this still goes to the mission of small affordable homes being available with out excessive business concerns.

Hi @Mike Mosk, If you invest in a DST with debt, then when that investment rolls over, you would either need to reinvest in a property or DST with equal or greater debt, or come out of pocket for the difference with cash, in order to defer capital gains liabilities.To the extent you take on debt in excess of what you are currently carrying (in your case zero debt), you get additional basis which can be depreciated.  

It depends on the type of lender and their risk appetite.