I primarily invest in lower end homes as well and the main problem with them is even though they cash flow greatly, your exit strategies are compromised because you can't refi out of them do to the appraised value being so low.

Things like failing foundation and compromised structural supports.

If you buy too high, your ROI, whether using for a rental or flip, is compromised.

Yes, it sucks to have had these problems and these tenants, BUT, sometimes it's worth it to suck it up and make some compromises.

And having worked at a bank (and a husband in technology security), yeah--I don't think people really realize how often they are compromising themselves in the course of normal business.  

This may mean your quality and accuracy will be compromised. 

If a sincerely interested, QUALIFIED applicant has concerns about the rent, they can attempt to negotiate with you but be careful not to compromise on the quality of the tenant themselves just to fill the vacancy.

@Joel Owens & Bob Floss You bring up excellent points on doing a rent vs own analysis and making sure I don't compromise my business finances by making the purchase.

This is a conversation I often times have to have with individuals who are married and/or have kids... is finding that compromise that works best for them. 

Preference wise, we would like to be more hands-off since our current job is busy, we are okay with compromising short term cash flow with long term appreciation.