I'm sure the people who wanted the wild west of SIDRA type accounts will be probably disappointed with a new regime.

Just like if you were doing a marketing campaign for any other business type, you have a lead list and now you have to work it and see what you can sell.Yes, its a lot of manual work.

These types of properties can still appreciate an exceptional amount if you pick the right area.

I think the answer to your question depends on the type of tenant you would be targeting.

I wouldn't do it unless I had the first type of property.

@Frank Pyle yeah, this is pretty normal and the type of home you use isn't of consequence. 

Is this different from an arbitrage type deal or are they similar? 

The first type is more hands on, direct engagement with the tenant and the property, the other one is more hands off, and work at a distance. 

Depending how much of the neighborhood is a hot zone for renting rather buying, and which Property type is performing better than the other (meaning 1bd 1ba 2 floor renting out faster and much more consistently than a 2bd 1ba 1 floor), you can make your choice of those factors as well as other ones that impact your decision for what you wanna do with your investment.

What made you interested in investing in this type of deal?