That is just example language - you'll need to use wording that is specific to your state - but you get the picture. 

The website looks like it covers all of this, but I haven't seen a lot of talk about it.

I think Peter covered the best course of action.

Get a good cap rate basically covers your financing and ideally 20% more for maintanance, prop management fees.

The house had a warranty the first year that covered anything that came up, and we only had one issue with HVAC over those 3 years. 

I can only come out of pocket to cover mortgage so long.  

The least states:"Tenant shall pay a "late charge" not in excess of five (5%) percent of the amount in arrears for each month the arrears remain unpaid if any Rent is paid more than ten (10) days after the due date thereof, to cover the extra expense involved in handling delinquent payments.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

More and more insurers are refusing to cover disaster-prone locations.

Price RangeDefine your financial boundaries based on available capital and borrowing ability:For Class A & B, financing typically covers 75%-80% of the purchase price, allowing you to buy properties in the $6M-$12M range if you have $2.3M total cash.For Class C & D, due to higher risk, the price range might be reduced to $5M-$10M with the same cash.5.