Good STR areas are often times desirable places to live as well, so prices tend to be higher in my experience. 

I tend to agree, I hate to lose all of my passive income just to eliminate my primary mortgage. just out of curiosity, what makes you say that an HOA is a hindrance?

Rents tend to rise over time, and that extra $100 in cash flow might look a lot better a few years down the road.Have you considered exploring markets like Austin or Scottsdale?

Your local partner can help verify if the area really supports those rents long-term.Regarding school ratings, they’re important for single-family homes but may not be as critical for duplexes, which tend to attract a more diverse renter pool (young professionals, retirees, etc.).

Could probably cut that down a little but I tend to underwrite conservatively. 

Memphis has a pretty affordable housing market and tends to offer solid rental yields, which might align well with your goals.

They tend to look at the bigger picture rather than just the fine print.

I have most of my tenants through local mental health/addiction services, and those tend to be better than the randoms from craiglist, as they typically have a case manager to check up on them occasionally...

A referral like that carries more credibility than a pre-approval letter. 

They're typically more expensive than a bank or conventional financing but can close much faster and tend to accept borrowers who can't achieve bank financing.