Here is what an electrician will tell you about knob and tube wiring. 1) is it safe: yes as long as it is the same as it was when installed. 2) what are the dangers: Fire, death, electrical shock. 3) should I remove it: NO unqualified person should remove it refer to number two if you have questions. 4) if I have knob and tube is it okay to install three prong outlet.

I realize there's risk involved but it seems like it can be mitigated if someone has done a lot of homework and can be flexible.I think my next steps are to read some books (Josh & Brandon's questions at the end of each interview are so helpful!)

L/O's could allow new doctors to purchase an option on a property in a nice neighborhood and give them time to mitigate their debt problems.  

Depending on what the Borrower's income documentation looks like, we have a pretty good mitigation plan to default and delinquency in place.  

If so, you may be in danger of loosing it.

It sounds like you are not going to file an offering with the SEC which can be dangerous if you are soliciting to people you don't know.  

I wouldn't want to rent to anyone that chooses to live in the ghetto that is dangerous for their children. 

Take the time to do a thorough screening before the tenant moves in to mitigate your risk.

Just came across this list of most dangerous cities in America: Forbes 10 Most Dangerous US Cities and to my surprise many of the top rental markets spoke of by the other members are on the list!  

Therefore, I have zero experience with how to mitigate extensive repair and upkeep costs, which worries me in this market.