It is driven primarily by unknown fear.

Totally different with renting to an unknown person who may beliving/sleeping in the same house as the tenant and tenant's kids/family for days, weeks or months and throughout the night in some cases when they are asleep.

I believe in having a handful of serious buyers than a database of unknowns..Hope that helps.

Now I think the interest only method have too many unknowns for me to be comfortable with it.

I wouldn't buy blind in an unknown area.  

I would much rather get a nicely rehabbed property from someone trusted here on BP than a place like Roofstock where you're dealing with the unknown.

It's a huge unknown to be putting in so much work/money. 

Lot of unknowns here.

Obviously, the unknown occupant can lead to trouble in some cases, but again, you have way less actual control over this versus when you are screening the tenant. 

But a certain amount of fear of the unknown might cause them to feel they HAVE to pay for something worthwhile.