Its a security measure to protect their investment.

But it clearly wouldn't work for us smaller fish (I'm at 23 and I am definitely smaller fish to them).ESCROW ACCOUNTSThey want all the rent for the houses to go into an account that they have access to and they want security deposits in a separate account and they want reserves and capital expenses to go into yet another separate account.Add in another 5% just to manage all the separate accounts they're asking for.

The absolute best method is through networking.

One thing I am concerned about is my ability to secure financing.

The SAFE Act basically states that any financing method or system devised that may provide any rent credit toward the purchase of a residence or that facilitates the sale of any covered property will be covered under the law.

Securing those local bank relationships was a major victory.Based on that previous experience I tried something different this time around.

Perhaps your method of metrics makes sense to you but frankly it seems to defy conventional wisdom.

That would be the cleanest way to handle this and not mess with any of the wrap idea.Terms of the debt are only found in the Note, there are no debt terms in the Mortgage, Deed of Trust or Security Deed ("security instrument").

They don't matter much as long as you still have cash flow, equity build, inflation security, and appreciation.

Legal fees.Accounting fees.Lost rent due to a lengthy eviction.Tenant damage above the security deposit.Utilities, at least when its vacant.Capital items (e.g., appliances, carpets, furnaces, roofs, etc.)Speaking of carpets, new carpets every 3-5 years.Property management.Make ready costs.