Affordability is one of the biggest challenges in today’s housing market.I believe smaller, more dense units are part of the solution:1) Buyers can only afford smaller homes in today’s economy.2) Denser units maximize the land available, increasing housing supply to help offset demand and ultimately bring costs down overall.It’s not just about building more, it’s also about building smarter.What are your thoughts?

But, they will be in challenging parts of town where realistically you do not want to own property and your long-run returns will under-perform.I'd encourage you to find a balance of sub-market growth, nearby employment, strong income, and only then a good rent-to-value ratio. 

Challenges?

Challenges?

What are your current goals or challenges in real estate?

Cash flow often being reinvested into property expenses, which can make it challenging to rely on alone.

There are of course exceptions, but so long as you pay your taxes, the US government won't challenge you or your business, so long as it's legal and it complies with the United States law.So the immediate answer is yes, you can do.

or “What has been the biggest challenge for you as a new investor?”)

Challenges?

See the chart from Fair Isaac Company (FICO) below: FICO Score Pct of Population Default Probability 800 or more 13.00% 1.00% 750-799 27.00% 1.00% 700-749 18.00% 4.40% 650-699 15.00% 8.90% 600-649 12.00% 15.80% 550-599 8.00% 22.50% 500-549 5.00% 28.40% Less than 499 2.00% 41.00% Source: Fair Isaac CompanyAccording to this chart, investors should use corresponding vacancy+tenant-nonperformance factors of approximately 5% for Class A rentals, 10% for Class B and 20% for Class C.To address Class C payment challenges, many industry "experts" are now selling programs to newbie investors about how Section 8 tenants are the cure.