Tenant issues are more likely to arise and then you have the owner....many aren't qualified expertise wise or financially to weather the storm.

But I have a client with the same type of building and has a non-conforming basement that he uses as an Airbnb and hasn't had any issues with it. 

The main issue I have is contemplating the baloon payment at the end of the 2nd year and refinancing the remainder with a bank...how can I compute that into calculating the IRR?

A deal killer has no emotions.

Getting more mortgages does not help me with the two issues I outlined - spending less time on real estate and freeing up head-space.

As far as financing, if you have real CF then it shouldn't be an issue.

Traveling to other states isn’t an issue for me. 

The main issues a lot of investors/PM's run into is the inspection period since Section 8 inspections are no walk in the park.

No emotions... no arguments.... this is the lease conditions, this is the eviction process for not following the lease terms... that's it.... no emotion. 

Is the state a fan of those who manage in this manner, not so much, but a good reply is why they don't take issue with the countless employed non-licensed managers at apartment communities all over?