I think this will correct itself over the next 3 - 5 years but it will make cashflow tight or negative until then.I have a great contact of a Realtor that works primarily with investors who has represented a few of my borrowers that I can share with you.

May negative cashflow until fixed.3) Buy established business: assuming you mean something other than real estate related.

Not sure how many PMCs you've had bad experiences with, but we'll take exception to:"Then do a thorough research on tenant applicants (note: leaving this to a PM may be hazardous to your financial health)".BP seems to have more threads about screening mistakes by DIY landlords as opposed to PMCs.Now, if you'd have mentioned Maintenance, you'd get no argument from me:) Even the PMC industry acknowledges maintenance as one of the biggest challenges.Rereading my post, I kinda see how I sounded negative toward PMs.  

I only use them on wrap/subto/seller finance transactions.

Well even if the rent is equal to the mortgage, you'll still be in the negative after repairs, CapEx, vacancy, etc.Why would you specifically be thinking of investing at a negative cash flow?

This leads me back to my mother, as she approaches her end years, I hate to think about this, but she wants to leave my sister and I one of the houses I mentioned earlier.

I can really empathize, I've been under the knife many times.FWIW So far my kiln dried lumber is still going down & I only by American made electrical materials from Schneider corp.

We are ok with no or even slight negative cashflow since it would be a strong equity position for us if we hold it. 

If you buy the single now your DTI will be negatively affected for future properties.

@Jordan Meltzer unless you find a screaming deal - a Class A property won't cashflow for 3-5 years.Class B: 1-3 years.Class C: most investors don't properly understand the risks, so should stay away from them.So, you may need to deal with negative cashflow, but plan on appreciation increasing your wealth.