People do it and get away with it but this is a very real risk to be aware of. 

Not a nationally known tourist destination, but a hot spot for DFW locals to do weekend getaways, weddings, etc.

@Tom McGrew yes, that would be perfect!

I'm thinking about turning that riverfront property into an RV Park or Cabin/Yurt Air BND Getaway.  

Lesser known areas locations by universities and small getaway towns.Pros:Maybe just 30-40 active listings so low competition.

That would be a perfect move for HELOC money in my portfolio, as it wouldn't max my line, and the goal is to repay after improving the property, ideally under a year.  

Life is not perfect.

@Tracy Cooper It is a perfectly fine way to get started if you are not a professional services provider.

If they happen to cut corners and have placed a bad tenant, OR if they placed a perfectly good tenant and set bad habits, OR if they did something like set an expectation of below market rent with a perfectly good tenant then you get all of that.So, reduced risk with all the seller's habits wrapped up in it, or increased front-end risk with none of that.It's not always that simple, but sometimes it is :) 

This one may sound like an impossible scenario but it worked perfectly.