The real estate investing industry uses "Classes" to rank property performance risk, but there's NO agreed upon industry model:(Here's what we use for our Metro Detroit market:Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

Quote from @Brandon Croucier: No need to be paying an upfront fee to a lender.As a lender it is our job to perform or we do not get paid. 

.—(1) Whenever money is deposited or advanced by a tenant on a rental agreement as security for performance of the rental agreement or as advance rent for other than the next immediate rental period, the landlord or the landlord’s agent shall either:(a) Hold the total amount of such money in a separate non-interest-bearing account in a Florida banking institution for the benefit of the tenant or tenants.

I’ve found that C to B-class neighborhoods tend to perform best for Section 8 rentals.

Given this is a front loaded fee that needs to be overcome in asset performance, it is a lot harder to absorb on "smaller" deals.  

From what I’ve heard, properties that emphasize tranquility.. like offering outdoor seating areas, fire pits, or even something as simple as a hammock.. tend to perform exceptionally well in remote settings.You’re spot on about STR policies in Johnson City versus Knoxville.

Not sure why that happen, however the best way to screen a potential tenant is to see how they have performed in the past. 

Perform an inspection while you're at it. 

We invest in non performing loans and do some private lending as well.

I wanted to be absolutely sure I had complete agency and that I knew how to perform my own analysis over various situations.