I am 99% sure we aren't going to go the heat strip route since it would involve upgrading the electrical panel and service. 

Don't believe what anyone tells you besides your insurance agent/broker and even then verify the info they're telling you, don't go off of the owner's previous insurance numbers.Also, be careful that in-place rents aren't already at market or above market slightly.

They aren't just out there, you gotta find them. 

So if you're next vacancy is Sept 1, it makes sense there aren't many inquiries yet.

For me, domestic issues aren't my problem as a landlord.  

This presumes you make smart purchases that cash flow after paying all their expenses (Principle, interest, Taxes, Insurance, and a maintenance / Capex reserves).The risk of leverage is if your properties AREN'T making money - maybe you misjudged your income, or you run into repairs that cost more than you expected or budgeted for.  

As a result, they are renting this 3-bed, 2-bath house for $1000 a month to a group of guys who aren't on any type of rental agreement or lease.

Makes me wonder why more of them aren't making proper efforts to educate themselves on value and instead think that a house selling for say $250K is a great deal because it is much cheaper than houses where they are from.

This can be a bit of a pickle, especially if you’re tight on cash reserves and both units aren't rented for a period.If you’re considering cash for keys, there are various ways to approach it, depending on how open the tenants are to the idea.

Many high school students who aren't ready to go directly to college/university will benefit from taking a year off to decide what they really want to do instead of going and 1-2 years in decide they don't like what they are doing.