SO many more options and the reduced responsibilites and work loads are under valued until you deal with them.. lol Also when you factor in management fees it can be quite comparable in net proceeds, without the wear and tear on the property and furnishings. 

This reduces their upfront cost so they don’t need a large deposit.

Remember that the leveraged purchases are not going to add significant cash flow immediately and borrowing against existing properties will also reduce their cash flow.

If your leasing application process is thorough and well thought out, and if your lease agreement has been well drafted by your local attorney and if it includes clauses that permit you/your property manager enough latitude to maneuver and anticipate undesirable tenant behaviors, both actions and inactions, and you have operational processes which align with enforcement of your lease, then you've done all you can do to reduce this inherent risk of an undesirable tenant.  

House hacking with an SFDU could be a smart first step since it allows you to reduce your housing costs while building equity.

Just reduce there rent by $5 and they will be happy to do it.

Showing ID is not only a safety measure for yourself and the other person, it also helps to reduce fraud if someone is unwilling to provide identification and is being this difficult with a simple ask, then I would also question whether or not they would be a good fit as a tenant

Energy Efficiency ImprovementsInstalling energy-efficient windows, doors, insulation, and HVAC systems can appeal to modern buyers who want to reduce utility bills.

As for your neighbors, they could have exemptions like Homestead, widow, military disability and many others that can reduce the amount of taxes.

Normally when a  property is advertised as "cash only" the property is in poor condition and/or the seller wants to reduce contingencies and opts for a cleaner transaction.