I also make sure the potential tenant sends me references from their previous landlords and I end up calling them.

Check the condition of the property and estimate potential renovation costs.

It definitely has potential, but I agree with what @Dan Heuschele said.

Documentation should include details regarding the business purpose, total use of the property, specific expenditures, business usage, and dates of expenditures and use.In the absence of such documentation, deductions are vulnerable to disallowance, leading to potential penalties and additional tax liabilities.

If you know where to buy, Philly is a good potential house hack market.

Define your risk tolerance & budget - if you lost it all, would it break you financially.  3.

It's understandable to have reservations, but don't let excuses hinder your potential for passive income and wealth growth!

I think the potential is there!

I suspect their criteria increased to re-alight with risk. 

For that range you should not be having problems as you should be in B grade other than maintenance for capex that is missed but that is only a year or 2 and not vacancy.  .75% in Baltimore should be A grade with lesser vacancy and only potential initial maintenance.