I would NOT want to create an environment where people looking for a quick buck become a headache around the neighborhood and consequently relating back to me.2.

Consequently, I wouldn't discount you for higher grade properties.

What are the consequences?

@Hank HebelYou may move an inherited IRA from one institution to another without tax consequences. 

Consequently, on all the houses I would offer less than what they owe.

The direct consequence is that our initial cash-neutral property just became CF positive in Year 2 and it will keep improving year after year (as long as you can increase rent in line with inflation, and that expenses also follow the same pattern).

You may need to consider the tax consequences of selling a personal residence VS REntal.  

Unfortunately, investing is still the wild west in that anyone can claim anything with few consequences, so it's advisable to believe none of what you hear and only half of what you see.

Excellent comments about cycles and understanding what drives them, their consequences, and the opportunities that they afford.

Consequently, paying down the loan lowers your return.... am I missing something?