Another aspect of this is parasitical family members who are suddenly "close to you" and need accommodation because of some unexpected and horrible and unfair emergency. 

By doing this, you’ll avoid any surprises down the road and ensure the deal still makes sense for you financially.

For your part, it might seem like a free roll of the dice to go to court, but there are surprises and landmines along the way, litigation always takes far longer than anybody expects, and the time and emotional expense of fooling with litigation are energy drains on more productive endeavors.

IMO cash flow provides a way to mitigate the risk of unexpected expenses and loss of income due to vacancies.

You'd be surprised to learn that someone living in a rental or apartment, that has a family and is a successful small businessman, has the money and is willing to take that deal.

At over 4000 sq ft, I'm surprised you won't be able to list for a much higher number to net a decent profit, but without knowing more specifics on the house and location, I am speculating here. 

At $1350 rent:- sustained maintenance/cap ex will far exceed 10%- I will be surprised if you can find someone to manage this one unit at $108/month.  

Some investors thrive in these situations, while others prefer clearer paths to ROI.Before proceeding, consult with a real estate attorney and conduct a title search to uncover any surprises.

Using a smaller bank or credit union is the way to go.Being that you have been in business for 10 years I am VERY surprised your business banker can't help you!

More than likely, you’re going to encounter some kind of problem or unexpected circumstance at some point.