While I think it has its merits, it has not been my experience investing in these areas.

Then who knows maybe they call you in  a rough headache filled month when a few expensive repairs or vacancies have them thinking about the merits of being a note holder getting a fat check every month and no problems....Best of luck!

I advise the second type, though both have there merits.

Either way, it does merit a deeper look. 

I have some non-finance reasons for buying this house (to provide housing for one of my adult kids), but I'd also like to evaluate the deal on its own merits, so if we don't end up using it for Adult Kid, I will have a good feel for whether this was/is a decent deal from a pure financial position. 

I have seen a lot of people give even their garbage man collector Christmas gifts.If their service merits it. 

You need someone giving you unfiltered thoughts on the merits of the deal.

If the deal is "good," would you qualify for a conventional loan on the merits using the rent schedule?

Both strategies have merit in my opinion - but I'll explain why "differentiate" has merit (for the right investor)In my past career I helped a handful of consumer brands reframe how they thought about product design and marketing - we helped them change the way they thought about demand from a "product" lens to a "consumer psychology" lens.

@Bjorn Ahlblad thanks, yes good reminder that a little premium (for the right deal) may be merited provided the right upside.