However, having 7 people in a 4-bedroom, 2-bath, 1200 sq ft house could raise concerns regarding overcrowding, potentially leading to wear and tear, noise issues, and safety concerns.

My goal is to live for free but would be ok with paying some out of pocket.2) I'd say I care more about the safety and transportation ability of the neighborhood. 

Quote from @John Underwood: Not sure about guest having to start a fire and keep putting wood into a hot tub to be able to use it.As a host I would want to offer these through my site and get a cut or I would just buy the amenity and add it if I thought it was worth while.I have referred people to boat rental places on occasion, just because I don't want to rent my boat.That's a fair point about the fire - Is your concern more about the hassle for the guest or their safety? 

Also, I've done the rental license inspection checklist, and it is basically just health and safety items every good landlord should want for their rental units anyway, so it is a minor inconvenience and a small cost every four years.Denver is still a great place to buy, even with the rental license component now. 

Bigger risk - bigger returnsEveryone wants to invest 100k and make 1000 a month in cash flow.Consider these items:- Finding a good tenant is extremely difficult (your candidates are not going to be perfect) Expect to take people with 500 credit score as a "good" option- You'll spend a lot of time on arguments for late rents- Angry tenants can lead to non payment of rent and damage to property- When people have less to lose - don't care about credit rating, cleanliness, landlord referrals, they won't care about your property- Driving to an unsafe neighborhood for repairs, maintenance, checking in on property - is it really worth your safety?

Regarding Durham, despite rising home prices, seems to be better than the CH area but some of the areas where there are opportunity seem questionable in terms of safety and tenants. 

My own experience 21 years ago is very similar, except I invested in my local neighborhoods, within 30 minutes drive to each property in Brooklyn.I also was a W2 Employee (a highly paid one though), and considered that to be my safety net while Investing was all about giving me the option NOT to work if I choose NOT to work in the future when my cash flow exceeded my expenses.That's what Financial independence do... it completely lowers your stress level as you don't really need to depend on a job.That being said, having the W2 job made the transition incredibly straightforward with minimal risk.You basically are able to qualify for the best Mortgages, at least in the beginning, and having that advantage helps to lower the risk of that Investment.Just like you, I almost ALWAYs advertise the apts before purchasing it, even though I did not own it at the time.

Most insurance claims on single family homes comes not from damage to the home (liability) but from damage to a person (workers comp) and if you are dealing with subs without insurance, you are often dealing with less skilled labor, lesser safety precautions and your risk skyrockets.

I personally wouldn't even respond to a text like that - unless it has to do with health/safety leave me alone.

Oftentimes houses that are not being scooped up are because they are in bad areas that promote the economy, health, or sustained living, and safety.