I'm comfortable with the obvious #s (ROI, yield), but my concerns are (1) figuring out whether the house is "on the right side of the tracks," (2) if there are any big ticket purchases (e.g. roof, water heater) that are required or impending, and (3) what the local economic prospects look like.  

BUT you have less red tape, no tax returns, DTI, or employment checks are required.

Most Insurance companies require occupancy by the owner to coverage it with a Homeowners polciy.  

Navigating this situation requires careful consideration.

Of note I am renting in Toledo OH, income sources can not be discriminated against, but what I am less clear on is whether I can require that a tenant make a certain threshold for consideration. 

Your circumstance requires some important judgements and considerations.

Some alternative strategies include requiring renters insurance with pet coverage, conducting thorough inspections before and after tenancy, and establishing clear guidelines for pet behavior and care in the rental agreement.

Many big box hard money lenders require a minimum loan amount of $100k. 

If your loan is a short term loan with a balloon payment, then you are likely going to be required to refinance or pay off the balance. 

Of course, the rate is a touch higher and requires you have greater reserves.