Their ability, or inability, to meet their basic need for housing impacts the greater community.

@Carey Lilly,Potential as an investment tends to be more about a property's ability to produce income than about a live-in owner's preferences.This may sound a bit hard, but if the numbers don't work, move on.

It's a great service and will prevent you getting weird calls at all hours because of the ability to ONLY have calls sent to your email.

I see the IRS regs about rental activities being defined as passive, but I don't see anything about a lower rate.I just see that this "passive activity" distinction subjects us to "passive activity loss rules", which limit our ability to offset other types of income with net passive losses.But even that limitation is negated for us because we fall into the "active participation" exception, so we can offset our regular earned taxable income dollar-for-dollar with losses from our rental (if I understand the regs correctly).

Those values will typically be location dependent and type of buyer dependent, but can also vary based on your negotiation ability.2. 

You are not in a position to determine or analyze their DTI ratios v. their savings v. their potential proceeds from the sale of the house and how it affects their ability to make a housing payment.  

There is all kind of product out there with reposition opportunities where you have the ability to bring them to 8-10 caps but these deals are tyocially in C-B areas.

Depending on the area demographics, it may not be a "preference"; a large percentage of households may not have the ability to purchase a home.

What I have been able to do, as you probably have, is to leverage my ability to get financing or create low money down deals (seller financing) and leverage this into a very high ROI operation. 

Additionally, the lack of ability to get a mortgage means you are needing a cash buyers.