The other (safer but not so sexy) exit strategy is that as the value of the property increases, we could change the strategy to a fixed income weolse by getting a loan from the bank that is based on the new higher valuation and would allow us to repay the jeonse tenant and get a weolse tenant in there.

I rent to some all the time (have one now) but I aim more for older, permanent, year round resident students than the traditional leave for summer teen or early 20 something. 

j/k  I have teens and those were so 4 years ago Of all your well thought-out choices, RE is still the one for me of you can get it. 

Also, real estate is sexy right now, wait until it cools off again, rinse and repeat.

And serious breaks once into teens, that's saying completely avoidable problems happening that cost severely. 

You can do NNN (triple net) leases where the returns aren't as sexy, but it's less stress for you.

Plus, most are hard to keep occupied.Yes, they look sooo sexy on paper.I know because I had 11 of these decrepit wonders at one point...I would highly recommend you stick with SFH built after 1945 and with rents over $700.

If you can't find someone in the low teens, keep looking. 

@Josh McCallen pref equity will def require a high teens IRR.

Married, 2 teens, dog lover!