Put stickers on houses.

I also gave a detailed list of the improvements (both to the lender and the appraiser) we made to it, showing why our property is better than the other comps, but listed at the same price.Has anyone else encountered this?

Haven't heard of that 10% balloon item, first time I encountered that, I could understand 10% retention.

Long term, it can be a tremendous investment but getting to that point is the "sticker shock" that's unsettling in my eyes.  

Now the downside is that should you encounter a great deal, there's going to be 3-5 other people offering on it.

Choosing the right Tenant can be very crucial as to how many evictions we may possible encounter.

The shortage may cause sticker shock to a tenant looking to move into an alternative rental.  

I have 6 rentals and I have never encountered so many interesting people.

Not trying to discourage you if you can make it work, but those are likely to be the biggest issues you will encounter...Best of luck John!

This is the time to disclose any issues you might encounter applying for a loan such as low credit score or whatever.