What should I do if my tenant isn't paying rent?""

I reduced my responsibility to only taxes/insurance while the tenant buyer does the maintenance, pays utilities and makes monthly payments to me. 

Fannie Mae will allow you to transfer the deed to an LLC if you decide to try to go the conventional route, but the loan would still be in your names and you'll need to pay a title company a second time post-closing to do this  for you. 3) I can't speak for the area so no comment there4) If you're self managing, make sure you find vendors you can trust in the area since you won't be able to easily verify if an HVAC guy, plumber, etc. is trying to rip you off and tell you to buy something you don't actually need. 5) Make sure you have clear alignment of goals and a clear operating agreement that spells out what to do if those goals start to not align in the future since you'll be jointly obligated to these properties. 

If I sell one house per year, it will pay for itself.

But since I'm dumb when it comes to such I may forever pay the price.  

@Chinku Chinku how is paying the loan balance down going to help you reach your goals?

If the home pays for itself and you can afford it, keep it.

both have 5yr pre pay penalty. 

So they price those homes at what a willing homeowner will pay for their personal residence.

Namely, that if a tenant (in this case accompanied by a whole family) ends up stop paying rent and I would be on the hook for both covering the mortgage and dealing with open ended legal costs and time.