However, the renter does have to follow basic rules regarding noise, cleaning up, no aggressive behavior, no property damage, etc.3.

They have the lowest rates we can find and since they are 30 year fixed...they allow us to cash flow better...which helps us qualify for other loans later.

The high crime areas put cash flow above all else. 

You can always close sooner if everything comes back clean on the title and all parties are ready to close.

He also told me that he spent the last 10-15 years off and on homeless and was a drug user who's been clean for the past 4 years. 

Hi Braden,Personally, it would depend on what % would allow you to cash flow.

I know the interest rates are going to vary and I have good credit score/clean history.

They have the lowest rates we can find and since they are 30 year fixed...they allow us to cash flow better...which helps us qualify for other loans later.

It's been a great cash-flowing rental. 

One often over looked over benefit of real estate investing is that the cash-flow is normally not taxed because it is shielded by depreciation.I think too many people get stuck on wanting real estate losses to offset their wages.I am getting 8% cash on cash return in real estate that is being shielded by depreciation.Plus I estimate that I am getting 4% appreciation on an annual basis.This 12% tax deferred return will build my wealth overtime.