Pigtown has some incentives associated with it from some local companies such as UMMC however I really see this area taking awhile to develop and some of the people I know who have purchased there regret it due to safety issues. 

My biggest concern is not having enough of a safety net for that second purchase. 

The equity in the home is the only safety net you have to buffer what will be negative cash flow long term.

I know most people say leverage into more units before paying off a unit as to not tie up funds (safety through numbers etc), but I like the idea of paying off 1 in 3 units owned.For marketing, it seems there are plenty of ways to find cash buyers for deals.

But you all have convinced me I don't need to quit my day job in order to do this, and I'm feeling much more  confident that I know enough about most of the big hazards to get over my fear of getting started.  

my partner in my timber business used this line frequentlyProverbs 11:14Where no counsel is, the people fall: but in the multitude of counsellers there is safety.

depends on tenant age, maturity and previous home ownership history. pellet stoves generally very safe 98% shut off with no electricity so not great safety net in grid down storm. and flame isnt open to being touched and can be controlled with thermostat   but as with everything from tub, pool, gym, ensure they sign legal form, require renters insurance, get your agent to include it and have lawyer draft a memo and add basic training every heating season. i am looking switch over my oil to pellet wood boiler fed by auger but its auto feed system in basement.  

I did not want to ignore the situation because of safety and liability issues.

These appliances have detachable cords, most notably for fire safety.

@Jacob Breazile - Make sure to account for the following expenses:1) Mortgage2) Mortgage insurance (PMI or MIP) or FHA Risk base3) Property Taxes4) City Taxes5) HOA (Home Owner’s Association) Dues and Fees and Assessments6) Insurance Property Hazard InsuranceFlood InsuranceEarthquake InsuranceUmbrella Insurance7) Vacancy Rate (usually 8% - the equivalent to one month a year, or 5-6% if multifamily and/or if experienced, if not use 8%)8) Utilities (you’ll have these if your tenant is not covering them and/or during vacancy) Water § Sewer § GarbageElectricityNatural GasPropane9) General Maintenance (usually 5%) Upkeep § LandscapingSnow removalRepairsNew Appliances10) Capital Expenditures (usually 5%, higher is the property is old and obsolete, less if fully rehabbed and all mechanicals and roof are new)11) Property Management (8%, even if you self manage, your time still has value and there might be a time when you'll want to be completely hands off or you'll not be able to do it, vacation, retirement, etc.)