It could also allow you to finance the property more easily, as you won't be dealing with the pre-repair value and condition issues that may make it more difficult to get financing.

In my area it is difficult (not impossible) to purchase MFH and make it work long-term, as suitable properties are in high demand and bargains are not to be had.  

The market I live in 1% is simple, 2% is very difficult. 3 of my units that rent for $650 each have all-in (purchase+rehab) of $48, 45, and 42, which works out to 1.35, 1.44, and 1.55, respectively.

If it is a tenant you have had for a while and is never late on their rent and they happen to have run into difficult times this one month, that's a different story and a different strategy.  

Now granted, it is difficult to hit that 1% rule sometimes ($1,000 in rent for every $100,000 in sales price) but we definitely still have positive cash flow places.  

Find a good CPA well versed in Tennessee real estate tax law to help you.Real estate is easy to get into and somewhat more difficult to get out of if you need to in case of emergency. 

Difficult to manage from afar however lucrative given the right circumstances.

How difficult will it be for us to find financing?  

Sometimes when a contractor does a project for you, he just fixes something and you have no idea how difficult or easy the task.  

It will be difficult to get many agents to just tap you in to their investors/cash buyers.