We went twice to the location to make sure it was the right one. 

With any lender though, the DSCR requirement is probably higher,  some lenders start asking for tax returns, in place rents becomes more important, current occupancy, and other factors that a residential property does not have to worry about. 

What area are you located in?

The house is located in a fast developing area and we experienced this situation two years ago.

We planned to sell, but our agent gave us another option - he had a husband and wife who didn't have the credit to purchase and would we consider renting.

No I’m not sure what took you down that road but just as stated they would stay at a property you own that’s for rent maybe that explains it better  

I'm not familiar with Indiana law specifically but in Colorado where I am the security deposit is the security deposit and is not paid per person unless you're renting by the room, but if both tenants signed a joint lease a full security deposit should be yours until the end of the lease and it's up to them to handle amongst themselves

The problem I see is the masses have not understood the advantage of purchasing a duplex.As far a Lennar is considered an entry level builder, I don't see that their neighborhoods in general have very good price appreciation, unless they are in a unique area where the location is exceptional.I think that prices are falling, and that you should be able to find a deal, the I-35 Corridor from  San Antonio to Austin is a very hot area.Here is an example of a property that was listed for $342,000, and the list price is down to $300,000, with a price drop of $20,000 on 7/29. 1261 Stone Rim Loop, Buda, Texas 78610, If you need any comps or info, just let me know, I'm a licensed Broker in Texas, and I have MLS access across the state.Also, I'm not sure if you know, but you can split your 1031 exchange and purchase multiple properties instead of just 1 property. 

You'll also want to know what the terms of the lease you are inheriting is and decide if you are OK with that.And sometimes, it is good to just walk away and put your effort into another deal that might make you as much money for less effort.I have been looking for buy and hold investors who rent homes in the area to see if they are interested.

I want to raise the rent for each unit.