Or are you more reserved and methodically and want to patiently start to invest?

To install them, you do drill right through the asphalt shingles, but any reputable installer also installs high quality metal flashing over every penetration to prevent leaking.

Hey Daniel,I use out of state property management teams and we use that same screening method you're currently using.

The Chinese have lots of methods to cause problems. 

However, there are several cities that touch it and are much better and safer, plus you'll get quality rentals and renters. 

I just finished listening to @Jay Hinrichs BP podcast and liked his method of being a Capitol Partner. 

However, I will be investing in multi-families soon and would like to apply this same accounting method for the properties as well.

At a macro level the owner is trading a higher price ($130K over appraisal) for favorable terms to you, the buyer (5% down and not having to quality through a bank). 

As they move up the net worth ladder investors tend to want less headaches and move into higher quality assets where ongoing cash flow is a little less but long term equity growth prospects are high.There is generally not demand for low income areas except for investor buyers searching for yield to deal with a headache versus ultra high quality areas where investors will usually pay  a premium to a seller to own in an area.

They are all in stable neighborhoods composed of primary owner/occupiers in markets with strong 30 year population + job growth forecasts.Sources of risk come from a variety of sources, starting with (1) the market, (2) the property and location, (3) price you pay, (4) management strategy, (5) rental rate you set, (6) rehab budget, (7) service provided to your tenants and how strict you are with them, (8) your ability to attract and retain high quality brokers, leasing agents, inspectors, handyman/contractors/agents, etc, etc., (9) level of investment experience you have, (10) familiarity of the market, etc.As an investor, one of my primary responsibilities is risk management... my ability to fully understand all of the risks that I am taking and put processes/structures in place to minimize or control these risks.And if you are a successful risk manager, i have found that in REI you are able to mitigate the downside and generate returns that ARE NOT commensurate with the risks you are taking and do so by providing a triple win to your investors, your tenants, and yourself!