When owner financing if you the buyer are getting non-recourse and no personal guarantee and didn't put much down then you are not losing much.When you have guarantees or recourse and have put considerable money down you have to have every exit covered to protect your capital at risk as a buyer.

They understand the cost of tying up capital and the value of of a quick exit.

For example, if I know a new roof is needed in 1-3yrs I plan on keeping reserves in the business checking acct to satisfy that till that time comes.The key is having it all planned out and what the exit strategy with each property.

If you're building a PM practice under a broker I recommend having an exit strategy in place.

I network with listing agents too, and the referral is one of my exit strategies.

SFR have the added option of being able to renovate for a retail sale in the future as Andrew mentioned for a potential larger return at exit.

As Will said since it is non-conforming it is very high risk.The problem I see if it is a short sale or foreclosure is when the broker or agent does a BPO or even a regular sale they make small adjustments for it but not enough.As mentioned you have to get it for an amazing price as you do not have enough comps to feel comfortable nailing down a very specific exit value but have more of a broad range.

You didn't say anything about the mortgage or your exit strat.

Your in a great location, always plan multiple exits.

If you have read up on the 70% rule, then likely you should have seen some of my comments which state that the rule needs to be adjusted according to circumstances and one of the circumstances is exit values (ARV).