They key is buying the correct property.

From my experience, 95% of the time if someone is doing their books on their own, it is not correct.

Make sure you are handling the security deposits correctly.

In general, i think Stuart is correct.  

Based on your numbers, this seems to be a Section 8 duplex, is that correct?

However as you correctly point out this is far more risky and or its risk capital compared to buying a income property.. but the reward can be strati-spherically higher .. not just a little bit but it can be life changing profits on some of these deals.

Seeing your property is in the correct zone in the future.  

Here's a technique you can try right away, and it's free.

Red River Gorge...New Mexico, correct?

Along the same lines, the buyer who can barely qualify for the entry level SFH is acutely aware of their cash shortage and therefore are going to be less accepting of household features near the end of their useful life, even if still functional and have a stronger desire for anything that is listed as a deficiency on the inspection report to be corrected.