read your mortgage is pretty much standard boiler plate.. in most.. and if your buying notes again make sure its there. 

You get more experience and your quality goes up.

Check out their prior deals to see the quality and the overall deal.3.

It is hard to judge how properties did in the last downturn because of too many variables to include owners living pay check to pay check with no reserves, paying 40% commissions vs self managing, location, quality, etc...

If you would buy a good quality rent ready house for 130k then lever it up like its 130k..

@Jeremy Taylor I would recommend starting out by setting the standards for how you will be a lender.

1 - DSCR just shows the lender the property can sustain itself and the rents cover the debt2 - Terms vary but will typically be 5-10 year ARM on commercial loans3 - 20-30% down is standard depending on the deal (SFH vs MFR) etc.

Notify each tenant in writing that you intend to increase the rent and require them to apply and meet your standards.

Find a few quality ones, provide proof that you have qualified investors (cash buyers?)

I was told here and there that renting out a SFH that has keyed entry bedroom door knobs (standard single cylinder and turn-button on the other side) is a fire hazard and against some kind of code or, if not, makes you liable for fire hazard dangers.