We can't blanketly deny people in my market based on criminal history, so I would double check in yours.I'm in C class markets, so everyone pretty much has some kind mark on their credit.

The reason for selling is we realized the property class and size isn’t what we were wanting long term.

Nice neighborhood and high rents.The upper level I was going to be able to increase the rent, just closing a weird second living room it has and convert it into a bedroom.

Now granted depending on Asset class this may not be an issue but it our trolling in the C D high yeild rentals this will be an issue.so in my mind figure out what you need to have to back stop you if you have either of those events  Black Swan or bad tenant. then put funds aside accordingly and its not exponential the more doors U have the less per door you need.

@Jim DavisIt really depends on the class of property and the funnel you collect potential tenants from.

So, I had the idea of BRRRRing with a low down payment (3-5%) on a fixer-upper single-family home that only needs cosmetic updates.

What is the market cap for this class of asset and area? 

Pick a solid B-Class suburban area.

The price range I am hoping for is a fixer upper at the $460k mark or less. 

For example, a given market / property class may be at 6% CAP rate, so if you find a property that is 10% CAP rate, that tells you it is either a good deal or distressed.