Screening and selection is very critical and you may show the property a dozen times before you get a suitable tenant (even harder in a small town and low income). 

It's possible that the tenants may have a case for what is called "constructive eviction", meaning that the property is not suitable for healthy habitation.

The bottome line is that these are for the passive investor, (the same investors who buy stocks and hold them) who hold full time jobs, may not be full time investors, and are looking for the tax advantages, cash flow, and the future upside of appreciation which is not guaranteed, but history has proven over time has gone up each and every decade.I do agree with Jon, that an expense ratio of 40% on AVERAGE, is a suitable screening tool.

We also have a big university and lots of students/parents who are looking for rentals when they realize the dorm is not suitable or overcrowded.

For a small property such as yours, it's suitable for an owner/user, so for a given group of users, it's worth more than the ROI, and in some cases, the ROI is irrelevant.Take hairdressing as an example.

If you have the properties in your own name(s) with suitable operating insurance and, in your capacity as guarantor(s) you have life (and, if required, disability) insurance sufficient to retire all debt, you will be fine.  

@Adam HorowitzPlease advise who these professional companies are who can secure suitably qualified individuals ( I’m reading as code for high FICO ?)

@J PetersonI would think if you are having trouble finding multifamily properties in your area, you might experience an even tougher time finding a suitable vacant lot to build one on.There is also a time factor.

The other 2 seems suitable for a quick calculation.

Sell off license (which is transferable) for $500,000+ and rent property to new tenantsI am stuck on finding a suitable financing option for the initial acquisition of the property.