They get a higher return since they are covering housing cost, have the $250k per spouse primary residence deduction in gains, is a savings account, higher leverage position, lower interest rate possible, will pay more premium for location, etc.House might be overpriced for REITs but not for home owners.  

In addition, due to them being eligible for conventional non-commercial financing they typically have lower cap rate than 5 units and more.  

. -- Thus, you can expect to get Class C or D tenants, which have a 15-25% probability of defaulting on their lease payments.2) If your PMC is lowering FICO to 550, what are they doing to improve their screening in other areas?

aim for a good house, not a cheap house as it will attract lower quality tenants and cost you more in the long run.

Class A properties will generally have high valuations and lower market Cap Rates.Class B Property:A step down from Class A, Class B properties are in the 10 to 20 year-old range, and are mostly well maintained.

However, I made the decision when interest rate was lower and there was support for an appreciating real estate market.

How would you handle entry for these?

After entry, save receipts and back up in a file for that year. 

This was my first deal, and house hacking made the most sense because it lowered the threshold for risk in my mind.

Ideally, no more than 5% over median and no lower than 15% under median.