Not one that is impossible to overcome by any means, lots of people do BRRRR OOS, but you have to put in the time and legwork to build your team before you start deal hunting. 

So we started chipping away at every obstacle.It took about 6 months but we did end up overcoming all of it.

When they do, adapt and over come.

Also down payments for these properties are min of 25% but closer to 30% (250-400k for your scenario) so these are tough to over come.

@Mike PaisleyFirst, congrats on overcoming such a large hurdle!

Get used to hearing no over and over again; overcoming failure is the difference between successful and unsuccessful investors.

Here are some indisputable facts that none of these companies can overcome: 1.There is no accurate nationwide criminal record check available.

Any tips to help overcome this tenant mindset?

If a property doesnt fit FHA condition criterias and its been sitting on the market for some time you can explore FHA 203K loan (construction loan wrapped with acquisition) to overcome those smaller items.

Due diligence and preparation are your ways to overcome the fear.