But he has clear advantage of getting much larger deposit (landlord in most jurisdictions is limited to collecting 1.5 or 2 months' rent payment, which he must place in an escrow vs. $8000-$10000 Scott can collect and use for any purpose the next day). 

While smaller towns in Kentucky often have lower price points, which means less capital is required, there are limitations to the profitability of these markets.

If this is your only property or your reserves are limited, holding onto a low-cash-flow property might not be the best move.

Being a remote location might already limit client base.

As @Jonathan Greene mentioned this is kind of a dated strategy in the new price/interest rate environment.

Now that we are 10 days from closing, I am talking to loan officer to get the Closing Disclosure so that I can know the exact cash to close (I need to move money from brokerage to bank account) and he is mentioning about 2% IPC limit. 

The fact of the matter is, when you sell or buy a business, you are entering into a business partnership with the person on the other end of the transaction.Yes, the partnership is limited (partial buyouts aside), but what you will be accomplishing during your time together is significant.Due diligence can take months.

It was on the more limited side in general (for a few days' worth).

Under IRS Publication 523 for 2023 dated February 2024, I qualify as "Service, Intelligence and Peace Corp Personnel" and for "qualified extended duty" (page 4& 5 - https://www.irs.gov/pub/irs-pdf/p523.pdf).

@Brian Rocha -Something to note is lenders will oftentimes slightly limit leverage on the purchase of a hard money loan or a "fix and flip" loan if you are doing borrower funded rehab.