Likely, but you're ensuring a (potentially) happier and more loyal tenant for the long-term. 

I wonder if it is feasible to pre-qualify prospects financially and criminally before touring"No, that's a fast pass to getting sued for violating a whole assortment of laws, how many and which all depending on the specifics to the potential buyer. 

What are the potential pitfalls or challenges in launching and running a title company?

Specifically, I’m drawn to distressed properties, such as pre-foreclosures and foreclosures, because of their potential for strong returns and lower acquisition costs which I feel is a great combination for a new investor with my budget.That said, entering the U.S. market as a Canadian comes with its own set of challenges, and I want to make sure I’m approaching this the right way.

Not only are they knowledgeable but they can potentially get your plans through quicker. 

You'll have quality tenants, minimal hands-on management, and lower potential maintenance issues.

I'd like some input on wrapping my head around a potential first house and if this sort of deal/rent makes sense.

I started marketing on multifamily trying to find potential good sellers.

Because, think about it, if you are new what value are you bringing to the equation other than potentially money?

Validate zoning, potential special or use variance, future zoning map, neighboring zoning.