- my only insurance claim in 28 years of car/home policies was for a windshield (road damaged) 10+ years agoI now realize it is likely for my State Farm policy premium to increase and after having read all sorts of horror stories online, I guess worst case scenario would be State Farm cancelling or not renewing my policy at which point I'd be at the mercy of high risk/$ options. 

This being my first investment property I wanted to keep it small and simple to minimize the risk and get some experience under my feet. 

That is because there is a significant risk the taxpayer will redeem, and the tenant will have to move.

is there any  potential risks ? 

Having a tenant trash a place is the risk you take when you become a landlord. 

I am looking for lower turnover tenants with solid cashflow but am focused more on building equity and minimizing risk.

Since we make offers based on return, we only get about 20% of that number.I define a good deal as a property that meets the following three criteria: Sustained profitability - The property must generate a positive cash flow today and into the foreseeable future.Likely to appreciate over time - No one knows the future but some properties/locations are more likely to appreciate than others.Located in an area where you can make money and business risks are low.Do we buy just based on return?

If they can't qualify with three, they sure as hell can't handle it with just two.When three or more unrelated people rent together, it is an increased risk.

But, it has higher risk of vandalism I fear, and I'm wondering if people are buying there.

What are the risks and challenges do you see?