As landlords, this could also be a threat since tenants could have a wall of debt hidden from any financial screening we do during the application process. 

My plan is to sell my current house which will give me around $300,000 and in the next 2 years me and my wife will save another $100,000 which come to the total of cash we have in hand is $400,000.

If you go the LTR rental route, I would recommend having a professional company do a tenant screening process.

This provision aims to address safety concerns while ensuring that the application process remains equitable.Evictions and Damages:Recent evictions and alleged damages within a year can be taken into account.

They also offer tenants various payment methods, which can simplify the process for everyone involved.

All FHA / VA loans are assumable but the seller may not want to participate due to it be a longer process and may not be ideal if there is a huge gap in price since you can only assume how much they owe at the lower rate .

It comes down to eviction process.

Quote from @Joey Andres: Too many landlords get emotionally involved in this process.

I self managed my first properties because I wanted to learn the process and be actively involved. 

One of my best short term rentals ever was a flip that I had trouble selling.