If you are investing in a distant market there should be even greater reasoning behind the investment because you have less control and therefore even greater risk no matter what anybody tries telling you. 

You should be weighing out your tolerance for risk.

Different investors have different tastes, risk appetites, and long-term goals.

That kind of experience builds confidence and reduces risk over time.

I definitely agree that rent by the room is awesome for increasing cash flow - again, it does come with it's headaches but with the higher risk comes higher reward (I've been doing it for almost 3 years now, it's really the only way to make the numbers work with little cash down on properties).From my personal experience, talking to others at meetups, and reading this post, I think there's definitely demand for specialized rent by the room property management.

@Jay Hinrichs      But I do understand the OP points and I think that folks just really dont understand the work and risk involved in ANY rental property short of NNN leases with super strong companies Exactly. 

If you are starting this is an approach that assumes more risk tolerance.

BUT…So has his aggravation, time commitment, and risk.   

This could be a great cash-flowing asset but you're also assuming a lot more risk with this structure.

Most of our investments we look at IRR (time value of money) to determine which investment is a good fit for us at this time - which factors in returns, risk and time of investment - is it a short term investment we want to get appreciation play or long term fixed income investment.