From the lower level you have to figure out how your properties perform.

There are still a lot of gems in the third ward near TSU and U of H.

How do you not look like a sleazy investor looking to sublease the property to a third party? 

They have a performing asset on their books - In my experience, they've always been happy with that.The biggest risk to me of doing subject to is that the original owner gets a home equity loan and splits - but in that case, you're only out the money it took you to catch up the mortgage.

I'm having trouble understanding what to do about the second and third home...

You might keep that one wall and build a new ADU around it.)But before renting out the house, I'd see if there was a way to get a third bedroom in there.  1,000sf should be adequate for 3 bedrooms.  

Honestly, you should be comparing the performance of RE vs other investments anyway.My first RE investment paid off our student loans.

Taking an application deposit requires the tenant to perform by a certain date to execute the lease and provide all the funds due for move in.

Performing energy efficiency retrofits of our properties is core to our operating principals, so we try to utilize these programs when available (even if the program is more show than substance).

So, I would really think if this property will really perform as you anticipate before pulling the trigger.