by the lake, with a lake view, or looking at the side of a 2 story house next door, next to a nice well kept park or next to the drug dealer's favorite park.Zillow is not accurate for any specific property, but can give a general idea for cookie cutter houses.

Due diligence does help alleviate a lot of issues that come up with tenants.

One other direction you could consider is getting a slightly larger property, say 2-4 unit that would alleviate your low loan amount issues while opening up increased cash flow opportunities.

In Seattle I could not reject tenants convicted of drug dealing into my multi family complexes that have kids. 

When accepting payments, you should look to receive them online however, if your tenant insists that they mail it, you should write it in our lease that if payment are mailed the tenants need to ensure they choose a traceable mailing option - which will alleviate you of the burden of having to listen to tenants tell you they mailed payment when they didn't. 

Even if you go to smaller towns with 5000-7000 people, with drug problems, cap rate wont go over 7~7.5% here.

What if he is a child molestor or has drug convictions or evictions on his record.

After the drug screen, they get a pen with my info on it. 

My realtors get drug all over the area, sent into all kinds of nasty places to get there input. 

They dont do a good job cleaning up after themselves, they throw parties where people are invites that do hard drugs and are very noisy, and they have started to be neglectful of their other responsibilities like cleaning altogether.Every time we leave town with our friends for a weekend trip or something, our friends are always stressed out at what is going on at home.Three weeks ago they agreed with the roommates that they were given a verbal 60 day notice to leave.