From the sentiment of your post it seems like you're viewing the buyers as strictly investors when they may lean more towards traditional homeowners looking for a quality of life improvement or an improvement on their current financial situation today.Let's say the buyer pays 465k and has a 5% interest rate.

We do receive a loyalty discount due to having homeowners & car insurance through them already.

My GUESS is these homeowners have been tricked/screwed in to signing a long term power purchase agreement, often with no buy out provision.

If you’re referring to the “newbies” with $10k to their name that watch a video by Pace and get excited and pay for joining, go out with their last $5k and do a sub to with a “desperate” homeowner without revealing all the possible consequences (because they are unaware of the consequences through lack of experience and lack of knowledge and or choose not to inform the seller) then I agree, it’s probably going to turn out badly for all concerned.If on the other hand you’re referring to a seasoned investor with excellent credit, significant cash reserves, who wants to add a property to their portfolio without going through loan qualifying, and can pay enough to give the seller “walking away” money because of the low existing interest rates and or, and is dealing with a informed seller, then I find nothing wrong or negative about the transaction.  

In the manufactured home industry, I've heard more complaints about new homes being bought and installed straight from the factory than consumers buying older homes direct from homeowners. 

The average homeowner is estimated to be underinsured by 40% based on replacement costs and that doesn't include the interior contents and assets, many of which are in the multi and even mega millions.

MOST people regardless if they are renters or home owners spend over 30% of their income on housing and utilities. 

My definitions of the classes are (someone else might have different opinion):Class A - higher property prices, low crime, highly rated schools, tenants and homeowner usually higher income (although if the owner bought years ago they could be lower income), streets are well kept, yards maintained, no run down cars parked in street. 

with 4K deductible home owners is $5300.  1600 sq ft rental, $2400.

I have home owners insurance should i buy another landlords policy as well?