In worst case scenario lender wants to breakeven on the mortgage if it becomes non-performing instead of taking a big loss.As STNL primary lease term winds down cap rate tends to rise as financing is difficult and more cash buyers needed.

The more-specific fears I had of buying the kind of rundown Rust Belt C/D SFR properties I tend to invest in had to do with the viability of the house.

When considering a typical investment, 99% of our attention tends to revolve around the asset itself with little regard for the surrounding community.

Rental list prices on the other hand, tend to reflect the landlord desire and the final rental price, because it is not customary to negotiate rental prices.

I tend to think many people here actually go based on something other than this kind of analysis.

The real estate investment community tends to be pretty sour on college education.

I'm up in MA and one of the credit unions I tend to work with only require a 5% downpayment for people with great credit which helps since many of the 3-4 families close to Boston are well over $1M.

I tend to focus on B/C neighborhoods.

House was built in 1980, is in a safe area with good school district, but it's a small town between two larger towns that has lower demand (but also very few rentals available and they tend to go quick). 

As your unit is a four bed/2.5 baths, you will definitely attract more families rather than individuals who rent with roommates. 2-3 beds tend to attract the latter rental group and with the larger amounts of beds and baths, that's more appealing to a larger family renter.First couple is obviously out - too many people and it does not seem like they're qualified.