When things go wrong, in the case of an owner-occupant losing employment or having some other financially distressful event, how will this be handled?

The lender typically will not re-trade a loan with a capital markets broker as they can stand to lose a ton of business versus a buyer calling for a one off loan.

I want to know if I will lose the 3.5% down payment if these 12 SFR are in my name when I go to get the loan.

Am I definitely going to lose rent value going from cramped 3 to nice 2? 

I'm sorry to hear this.If I were in your shoes I'd start telling myself that I'll be very lucky if I only lose 2 months rent. 

The percentage may differ based on the individuals and their needs but again the diversity needs to be there.I'll always be a RE guy first because that's what I know best but if you can tax free money from a cash out refinance, place it into an F.I.A. ( Fixed Indexed Annuity ) an literally be guaranteed not to ever lose money unless you withdraw it during the surrender period.

No need to venture abroad

You can have all the knowledge, and lose money because of the timing.

You will need all these answers when/if you have financing come up, and financing your venture may be tricky.

Stay hungry but don’t lose patience.