Sellers generally recognize that some assets are likely mispriced, whether too high or too low, because the sellers knows less than local investors and are likely relying in large part on BPOs.   

That being said, I'm not a fan of holding property in anything sub B quality. 

The risk of property damage or a lawsuit from a dog bite is too high. 

Be sure your lender is comfortable with this, as many fear giving folks primary loans for properties they view as having a high probability of being turned into a purely investment.

Highly doubtful that there is a NNN lease equivilatent for residential properties.

The payments and interest are high.

If the answer is "close enough," they move forward without much hesitation.While it's true that higher-quality tenants are easier to attract with nicer homes in better areas, I’ve managed C-class properties and had fantastic tenants.

Creative financing can help sellers make more money, solve pain points, gets them the money they need, and help them avoid a high tax bill.

For active investments I advocate considering how you can diversify WITHOUT ceding your competitive advantage nor the superior profitability of the niche your in.As an example my business is running an investment fund and syndication high interest commercial mortgage loans secured by income producing real estate. 

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