It is hard to argue that you are not flipping the property.  

If you are concerned about having a smaller payment, I would argue that you need to look at another house that is within budget.Interest only mortgage payments sounds like glorified renting, but with the downside that you now own the responsibilities if anything breaks.

I think the agent's argue that I am a stronger buyer or something. 

Some would argue you can't file if they're already gone. 

Only, if I have to file a few times for disposition after not receiving rent, than I have a case to argue that this tenant is a chronic late payer and the court might rule that he has to be evicted.

ABC's in Real Estate Investing by Ken McElroy Advanced ABC's in Real Estate Investing by Ken McElroyAlso, both of David Lindahls books - Multi family Millions and Emerging Real Estate Markets

Also "emerging real estate markets" by David Lindahl"ABCs of Real Estate Investing" and "Advanced ABCs of real estate Investing" by Ken McElroy

Some could argue $100/door/month is low, but if you combine that the fact that it's in AZ (which is tough for cash flow these days) and successful lease options, that becomes fairly enticing.

I would argue that sometimes the problem is poor money management on the part of a tenant and sometimes it’s unanticipated and unfortunate circumstances (loss of a job, illness).

You could also argue that since it is HOA responsibility they should be handling the task.