I may need to purchase something that numbers do not meet my normal criteria.  

It also depends on your goals and how safe/aggressive you want to be, how much you want it to earn, and what meshes best with your lifestyle. 

But, ultimately, it could work if you don't mind a low ROI.It could make sense if you look at a lifestyle rather than an investment purchase and you're just happy to cover your costs.

Your 3% rate likely helps you with cheap debt and without the need to chase high that normal rental rates.

In a few of the states there is either a form. you must sign or an application that your escrow closer must file in order to exempt from any state taxes or withholdings that might normally be collected at sale . 

with normal appreciation in a growing market in 2-5 years there is enough equity to refi.  

I wouldn't say that people in general like one type over another, but rather people in general cohorts (single, married - no kids, married - with kids, etc.) tend to gravitate towards certain types of properties based on their lifestyles.

They did not have major issues, just the normal things that come up over time if everything is not new already.

Maybe the landlord works a normal job on top of landlording or otherwise has a lot going on.  

But even if you fall under the normal amount for debt coverage there is other loans like DSCR  which qualifies the propertys income and not your income.