I think there are two options just based on your description.

It is a large geographical area and I personally am not bullish on all parts.

As far as backing out yes you can request your Escrow deposit back during the inspection period for any reason you deem fit, many individuals will say it is a free look however professionally that not the best description since it is not free, with any due diligence you invest in inspections and other professional services to answer as many unknowns as possible to remove as much risk as you can prior to purchase.

We state very clearly in our event description that there are NO sales pitches from the organizers at our event.

My only thought is to expand my geographical search, but should I also be rethinking my criteria?  

Your geographical location will not be a driving factor if you can source local third party management.

My taxable income does not exceed the limit around $200k. 1.Separate books and records are maintained to reflect income and expenses for each rental real estate enterprise;2.250 or more hours of rental services are performed per year with respect to the rental enterprise; and3.The taxpayer maintains contemporaneous records, including time reports, logs, or similar documents, regarding the following: (i) hours of all services performed; (ii) description of all services performed; (iii) dates on which such services were performed; and (iv) who performed the services.

@Chris Levarek Thanks for providing 4 different courses of action along with descriptions for each scenario. 

@Dawn Brenengen a rabbit hole is a perfect description! 

In those cases, you’ll simply be hemorrhaging cash.Might make more sense to start with a condo or small house if you’re new to this or if you’re entering a new geographic area!