The investors we work with take the approach that they want to get a minimal cash flow return as well as long-term appreciation (and mortgage pay-off from rents).I don't know about other markets, but Boise is challenging to find deals. 

I only invest in multi-family and don't let potential tenants with violent histories in my properties, but if you're comfortable with letting one of these tenants in I would check and see if either can get a co-signer as that will help minimize the low credit score and you can go after the co-signer (as well as the tenant) in the event there's an issue with rent or damage to the rental. 

Sounds like you got a pretty good deal going on right now and your able to make quite an income with your current job with minimal monthly expenses i presume so a mortgage payment that you can afford (do the math beforehand ) wouldn't be the end of the world for your income  especially if you had BOTH places rented out.

I just want to minimize the risk as much as possible and I think a lot of that is in the due diligence.

Starting small of course with a small flip with minimal work.

However, they must work harder/smarter to ensure their identified risks don't actually happen or the impact is minimized.

Vacancies and evictions cost an arm and a leg -I do whatever I can to minimize them.

Once a property was made minimally livable, any rents collected were deposited into the segregated accounts.

In an effort to minimize costs and maximize our learning curve we are considering one or both of us becoming a licensed real estate agent.  

Buy a small multi 2-4 units with minimal dp.