A lot of investors based in markets like California and New York are choosing to purchase their investments OOS in the Midwest because of the affordability and numbers making more sense.

They can choose to leave and you can both sign an agreement to terminate the tenancy, or, you are going to file for eviction and it will probably wreck their credit. 

.• Primary residence: A 2-bed, 2.5-bath townhouse purchased in 2020 with a 2.75% interest rate.

Quote from @Jason Seay: 3 bed 2 bath house. 

However, between the much lower mortgage interest rate in Europe and a better tax treatment in the US, I'd choose the former.

The issue I have seen with these types of properties is they could have two valuations - the value of the real estate which the structures will have little value and you have the land the other is as an operating business just like a bed and breakfast would have - real estate has value but it operates a business now you mention 12k / month but if someone also has to manage the property what is that worth and what would someone pay to manage a property like this?

We choose 20% since we would be out of state / wanted to be conservative but can adjust downwards.

Think about it: most of them are able-bodied adults who choose to live (mostly) free off the backs of others rather than contribute to society.Rent payments are usually steady, but Section 8 tenants took a lot more work upfront, throughout their tenancy and at the end of their tenancy.

As for tenant demand, choosing properties in core locations is more stable.I find it easier to add value to a mediocre but prime location deal than to strike a good deal on a substandard property. 

For a 4 bed you are likely looking for insurance placements for a family or temporary relocation.