Check local regulations on maximum number of unrelated people living under 0ne roof. 

Proc. 2000-37 and therefore qualifies for extension under Rev.

Carry appropriate insurance (property, general liability and make sure you are listed as additional insured under tenant's renters policy and 3rd party vendors).

Classified under "source of income". 

I'm looking to start off in areas with lower costs coming in, preferably under $100k single families but definitely under $200k. 

This ensures the property performs well even under less-than-ideal circumstances.If a property doesn’t align with your goals, it’s perfectly fine to move on.

Nobody is really running away from the underlying affordability issues.

I'm being nit picky on purpose.Also, the Standard Lease doesn't apply to commercial tenants, so if the property under question is 6+ units, that might be easier.What you have described is Property Manager that has a Lease Option on the property. 

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

I would buy 1 quality local single family home ASAP, under full market value, so I have an out if I want to sell.I would buy this property with the mindset that I am going to hold it forever, but with a 2-3 year “ trial period” mindset too, where if I don’t like REI and landlording, I can sell and still recoup my money and dump it into index funds.REI isn’t for everybody, but I’m glad I’m doing it.