What fixes that worry: Add to your rental an extra $50 or $100 per extra head past what you would normally expect to rent to this house (If you'd normally expect 5, charge for the 3 extra).Everything is negotiable to be a win win win for all involved.Worry #1 also requires frequent inspections to be certain no damage is occurring without being reported.Worry #2 has another component - eviction cannot be for non-payment; in some places eviction can be a challenge for matters other than non-payment.

Please talk to long time multifamily brokers/owners they will tell you that this occurs every 8-10 years depending on the economy and interest rates.

It never occurred to me that owning properties free and clear would be a negative to my application.

The only guidance comes from a 1994 Cleveland County District Court case and the unofficial “policy” of the Oklahoma Real Estate Commission.In 1994, the Cleveland County District Court was asked to answer whether ownership of real estate occurred at the moment the contract was signed or at closing.

When you invest in notes you have much grater control, the risk is significantly lower, the returns are higher and very predictable.I have about 5% invested in the stock market, about 30% in real estate (rentals) and the rest is in notes.Wise man said long time ago the following, I think we should listen to him:“Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”Ecclesiastes 11:2

My other issue would be what to do if a major expense occurs like a water heater rusting out.

@Greg HarrimanMany of us end up successful by 'accident'.  

Bottom line is there is so much variation in the economy there (Coke, Sports, Airlines, Tech, Automotive, Movie Industry, etc.) and there is a continued growth with International business occurring there too, so I just see a lot of potential for the area in the years to come.  

Implementing RUBS may occur in lieu of a rent increase after energy efficiency is improved. * The plan also includes spending $250,000 in capex in 2017 and 2018: Change all thermostats to "landlord friendly," replace all toilets with 1.6gpf models (as well as low-flow shower heads and sink aerators), and replace all lights with LED.

While your point about paying above market value is theoretically possible, in practice it will never occur as those factors contributing to local acquisition prices and the market CAP rate will also factor into our risk analysis (local economic trends, clientele, directional move of the neighbourhood (improving/deteriorating) which determines the level of return we would require from the venture.