The equity is then trapped in your house until you sell it or refinance it.

In other states where the standard purchase agreement does not include such language, on my deals, I tend to write the offer as 'cash' but then write into the contract, usually in the additional terms section, something to the effect that 'buyer has sufficient cash to close as evidenced by the attached proof of funds but reserves the right to use private/hard money financing so long as buyer closes the transaction on or before the close of escrow date referenced in section _____'.  

Well anyone who wants to see how I operate and I have been caught up in that trap of who has real product and who doesn't.

They are the ones who get divorced, file bankruptcy, can't afford to keep up with the bills and a growing family, fall for the "American Dream" trap of buying a fine home that they can't afford, loss their job, and so on.It's certainly wise to mail to all high equity owners.

Examples: mailbox door wont always stay shut, crickets and other insects (basement apartment), door to furnace doesnt stay shut, screen door wont lock, etc.I have a hard time saying no to her requests, because in reality I guess these things should actually be handled, but it's stuff most of tenants would handle themselves or just shrug it off.Any suggestions on how to combat something like this?

Then you factor in Section 8 and local regulations in regard to section 8....yeah.

Also, no standing water outside where insects can breed.

You won't make a killing, but provided you don't trap yourself into a huge mortgage you'll probably be fine.The main recommendation is always do your screening, even with section 8 - some might say, especially with section 8.

Tenant agrees to refrainfrom feeding stray animals and from leaving food outside for animals, as thiscan attract stray pets, wild animals, and insects to the property. 

I happen to be in the same market and I have extensively researched the topic - I'd love to be in section 8, but for me, and in this market, it doesn't make sense.