My experience so far though has been extremely competitive trying to get those properties though, so don't expect to just jump on the MLS and find an easy deal paying way less than market value.

Yes, but we are concerned about ESA dogs, and if a homeowner of a single family house who rented without help of a realtor can refuse ESA dogs. 

Property in San Francisco area, tenant late for pymt for the first time, extremely demanding & difficult to deal with (that shouldn't warrant an eviction though). 5 day grace period has passed, we are 3 days past due date and he is not being very communicative.

However what the bank would be concerned with is your cash flow and debt to income ratios.

@Buyan ThyagarajanI would be more concerned with the size of the renter population for 2-bedroom homes versus 3-bed properties.  

Has anyone done this and what should I be concerned about with this?

Try section 8 tenants for rental guarantee if you are concerned about the rougher areas.

I personally think it's probably difficult to see dramatic changes in your financial portfolio due to TK investments unless you get lucky with appreciation.Finally: If you are looking for an extremely passive investment, you can consider crowdfunded REIs and joint ventures.

The better quality ones are extremely durable and sometimes difficult to distinguish from wood.  

Mainly just concerned with the cash flow number.I really did not plan on paying the $175k.