Remember that the motivation for developers and other intermediaries is to get paid out of a transaction, they are less likely to be thinking about how to reduce the risk to us investors and that needs to be our job.

I've found that they don't repel mice as well as advertised, though it has reduced the spider population (I've only seen two inside the house this year).Another alternative is to encourage the tenant to clean with a peppermint based soap.  

I frankly think 20% is way too low because there are many other variables that could easily reduce that 20% down to 10% and at 10% you're basically working for free.

That being said I have more faith in my community than to think we would be reduced to a Mad Max/wild west quality of life.

My landscape company is going to be taking care of the properties which should reduce costs.

Even if it doesn't get you into the marginal bracket, it still reduces your total tax.Like I said there may be some limitation on deductability of losses on Passive income.

It will have a much larger affect on markets that have been inundated with foreign money, and are now seeing reduced returns.

If you have the funds available, $400/mo is an awesome risk-free/hassle-free return on $28k like @Orlando Spencer points out.Also, when my reserves are reduced, I tend to work harder to build them up again!  

But you can reduce the risk by being rigorous about learning first.

Typically escrow account balances on the existing loan are applied to the loan balance and reduce the payoff.