I liked having the ability to keep the property as a potential rental in the future, but given that it's pretty difficult to land a cash-flowing property in Lehi anyway, I'm wondering if not being able to rent it out in a few years would really be much of a problem (i.e. it might be better to sell and roll any appreciation into a rental in a cheaper market anyway).  

So I love the ability to invest small amounts in more volatile assets. 

So it’s too soon to tell what protections we may end up having to navigate as landlords.Having said that, there’s another statewide law (AB1482) already in effect that could potentially hinder your ability to end a one year lease and end the tenancy of the tenant.If your tenants have been in the property for over 12 months, AB1482 no longer allows landlords to terminate their tenancy with a simple 30 or 60 day notice unless: 1) the property qualifies for an exemption, or 2) you have “just cause”. 

In that the ability to dramatically raise rents is in deep question through end of year anbd maybe beyond.Just for punching more numbers lets do a rent raise: 1000+1300+1300 x 12 x 0.6 (say only 40% expense ratio since so nice fixed up and turn over guessed to be low) = $26.9kAnd 8% cap (whats cap rate in your area??)   

Currently looking at homes that need rehab but still inhabitable to some degree so banks are still willing to loan on them.

Even in the most remote areas, they have the ability to access internet from certain recreational facilities or something.It's probably not a big deal.

But it is still a bill you will have to pay each month.

Should I be concerned about default on ability to pay rent in a timely manner or follow through arguments?

Or does my ability to qualify for a mortgage for this type of situation decrease significantly while also increasing competition with other homebuyers?

I always looked at it as if I am getting a degree.