Hard to give up such a low mortgage rate, but in the end that's small potatoes compared to potential OOS problems.  

Rents have been pretty close to what the housing authorities advertise, sometimes even a bit higher.Fort Wayne’s a solid spot with low taxes and good cash flow—definitely worth looking into.

There are also several funds out there that provide high single digit yields that are low risk. 

The problem with averages is that a large number of high or low value properties can skew the figures either way.

They must be very low odds because insurance companies are in the business of making money, not paying out maximums.

Your estimate seems low, but even at that cost, it will not add that value.  

We do not have a resident benefit package, and we keep our tenant fees very low.

Not that I don’t enjoy dealing with tenants, maintenance, lawn care, Home Depot and Lowe’s trips and tenant change overs (I recently put new carpets, kitchen floor, appliances, vanity and mirror in the bathroom and fresh paint in my upstairs unit).

It allows you to take advantage of a low down payment loan.

Quote from @Jaycee Greene: Assuming you pay asking price, I'd estimate the down payment for something like that using a hard money loan (HML) would be around 40% of the purchase price and your monthly payment would be $2,600 with an interest rate in the low 7% range (probably need a 700+ credit score to get that).