I would never want to just screen someone on paper. 

I have paper applications at the open house so anyone interested can fill it out right there or I offer to email them the electronic version.

So for him, paper losses are good.

@Eduardo Sandoval Ramirez - Absolutely, you are just trading paper for a profit.

I am not going to do any improvements to the land, just improvements on paper etc.

The cheap homes may look great on paper, but the costs are always higher and tenants more problematic.Selling one property to buy two can make sense when you have equity built up and room to borrow more money. 

Seeing it on paper like this makes me realize it doesn't hit the 1% rule either, but maybe because the taxes are pretty low?

Even to Grade A RE paper there is a 2 to 3% default rate nationwide always has been..

Or at least just getting all of your thoughts and numbers on paper (or in a spreadsheet) and mapped out over the time period you're talking about, I think would be a very helpful exercise for you.

I think its a no brainer on paper. only you know the local market, will it lease?