Meaning if they leave on X date and leave the place clean you will not pursue collections on any past due rent.

Even if they are taking possession a few weeks from signing I collect first months and deposit at signing, and they only have a couple days to have the funds ready. 

There's a good chance he/she is an absentee landlord and doesn't realize what's going on and is just interested in collecting the rent.

Collect the Rent.

@Simon Huber:Of course there is a risk with any loan you take out, especially on a rental property where you are relying primarily on the tenant to perform.It is not unusual for most investors to service the loan on the rental property from collected rent.

Lots of tenants means more vacancy buffer in case we have some collection issues for a month or two.

I am done collecting data for now.

My understanding is: When you buy a tax lien, you pay the delinquent taxes on a property you don't own in return for the right to collect interest on that amount from the property owner.

My rent collected covers the mortgages on my 2 townhouses plus my primary home and cash flows $331/mo after all 3 mortgages are paid.

I'm beyond my realm of actual knowledge but I BELIEVE the objection has to do with imputed interest: interest that IRS assumes you are collecting and will tax accordingly.