Generally speaking, the neighborhoods aren't very good and the quality of tenant you will draw is poor.

My line of thinking is that lenders take into consideration household income. 

With the health of the economy as strong as it is now my guess is that we'll start to see rates working their way back up towards the 5-6% mark...I just don't know how quickly it will start to get there to take this into consideration when evaluating deals. 

That changes things.You see, the calculator takes time into consideration when it makes a calculation.

It is important that investors understand how a income property actually generates the income.Equity in a income property must be treated as a separate income generating stream on the property and there for draws income away from the property itself. 

One other consideration to discuss with your attorney is if you should or want to have an LLC for each house.  

Often residents of "not so good" are more helpful and considerate than people living in the top neighborhoods who want the world to know how special and entitled they are.Try to pay attention to who your neighbors will be and what type of traffic goes through the neighborhood.From a strictly investment standpoint, in Silicon Valley, lower rated neighborhoods and lower rated homes tend to have more volatile prices.

It seems pretty straight forward, request and escrow account, have the investors formulate an agreement for  property manager to draw funds and have an agreement signed between investors and property manager (Who will be collecting monthly rents).  

They will run title to make sure there are no liens attached to the home and then draw up settlement statements for you.

You may be happy buying the income stream and  not care about the draw-backs of an inflated sale price.