Even letting someone spread move-in costs like a deposit out over three months can be dangerous.

You're absolutely right that if you name 3 or fewer properties on your list it doesn't matter what their value is.It's also true that if you want to name 4 or more properties on your list (Account Closeds suggestion) that their total value can't be more than 200% of the value of what they sold.

Tenants are learning ways to force landlords to allow dangerous breeds and avoid deposits.

I found this interesting post:Denying a Renter Due to a Dangerous Criminal RecordLandlords and property managers are only allowed to use a criminal record to deny a rental applicant if the record shows dangerous criminal convictions that would put the property, other tenants, or the neighborhood at risk.

Yes the rates move, but do some simple math and you will see the danger is not as large as most people assume. 

Then I applied the personal touch, out of the few markets left there were even fewer that I had visited and of those even fewer that I knew people in.

I'm dangerous (as in unskilled) with a hammer.

I apologize for coming at you, but I think the whole 2% rule thing is dangerous and should not be glorified on here.

More doors (more streams of income, vacancy has smaller impact), less roofs (fewer capital expenses).  

With fewer lots, its harder to spread out cap ex expenses and that can really kill your cashflow.