Make sure that if you intend to stand firm a evict the tenant, your deficiency notice includes a notice that you are disabling unilateral payments as you are not accepting late rent. 

Its not always easy to come up with the down payment.

Of course, the rate can be slightly steeper than the conventional loans where it is a full document loan, where they need to qualify you based on your income.Alternative way, is to acquire the 2nd property as an investment property with conventional, while putting 15%-25% down payment.

Depending on the loan product used - to purchase a non owner occupied investment property you will need a 15-20% down payment plus closing costs.

Or they can keep, and the cash flow will significantly higher than than the P/I payment. 

The larger downpayment you can put down the lower your payment will be and ultimately will save you thousands or hundreds of thousands of dollars in interest.

I'm current on my loan and have never been late or missed a payment.  

With a substantial down payment, targeting the suggested price range within Raleigh limits is not only possible but strategic, considering the city's job growth and vibrant community.However, as you've wisely pointed out, the expansion towards outlying areas like Selma/Smithfield and Benson brings both opportunities and challenges.

With owner financing, you can usually put a smaller down payment down (15% or so) to get in, then drive the value through improvements or rent increases to market.I always look for light to improvements and mostly rent increases with month to month leases or vacancies to get the best deals that I can move the rents faster. 

Interest rate is at 4.75% and the mortgage payment is slightly less than the market rent in that area.