You do have to "kiss a lot of frogs" to find the right tenant, but just factor that in. 

Time was a factor as the bank was set to take the property back and we had pushed the closing back one day before it became REO.

That is another factor to see if it's worth rehabbing the property.

Hi Joseph -  For your first scenario, if you acquire another SFH with a traditional investment loan, the rental income can count toward lowering your DTI, but typically only a portion of it (usually 75% of the rental income is factored in).

This is by far the most important factor in my opinion.

Also, what key factors are influencing your decisions?

Consider factors like retirement, landlord fatigue, property maintenance issues, or asset liquidation.

How much above market will be the determining factor whether I want to move forward or not.

If you didn’t factor in some amount for repairs and vacancy and CapEx when you vetted your property I hope you will do so with the next one.

Look for homes that scare most homebuyers & factor in your renovation budget when making offers.- Opportunities with additional income potential.