For someone that's not as conservative, or a different view on the cycle, they might have a different opinion than me on all of this.2) Sponsor quality check: (takes about 45 minutes per deal)I believe that a great sponsor can take an average looking deal and make it great, and that in mediocre sponsor can take a fantastic looking deal and make it bad (especially if there is a severe recession).

That we never see...or visit...I am bad...

The tenant is an older lady and i don’t want to be the bad guy but I also want to make the best financial decision I can. 

There are good and bad areas to invest in any country (and even in Madrid, I've heard of people making much higher yields than those you mentioned).

I will most likely be using a HELOC also.I have good credit and quite a bit of equity in my primary so that is my way out.How far can conventional borrowing take an investor before the banks stop handing pit mortgages?

Many states require a credit report review 

So how much is your w-2 income and your total mortgage debt/car/credit cards?

Seems like my best choice now is to find a responsible mid-term tenant that passes background/credit check. 

Plus I like to have tangible assets that hold value over the long run in good times and bad.

Bad photos can tank your listing placement.