Lets say the house goes down in value for some reason and is only worth 110k after 4 years.  

The only reason I say LLC is because current biz is an S corp but not opposed to starting an LLC just to accomplish my goal easier. 

You can get better return comparing with the stock market (10-15% is reasonable expectation) and with lower risk.

Several months ago, when I decided I was going to stop doing direct mail for several reasons (cost, management of all the returned letters, time lag between sending them out to hearing from people, etc.), instead I decided to start building my own lead category verticals, comprising of Probate, Pre-foreclosures, Evictions, Violations and so forth; get them skip traced and call owners, instead of mailing them. 

When setting up these applications, we do ask about foreclosures/bankruptcies, felonies, reason for breaking a lease.

The market will tell you if what you're asking is reasonable, or if it's a  waste of time.   

The reason why most don't make the jump is due to financials, either your net worth, liquidity, or the ability to raise money.

This is wisdom right here and the only reason I went after dead beat tenants in the past.

Although i worked with a really good realtor so really the only reason for me was to save time and be more independent..

@Valerie Copeland yes, perhaps that is a "wiser" decision for the reasons you listed but I do not think you should be deterred from analyzing and (possibly) putting offers on properties strictly due to the fact that either it was no tenant or has a bad tenant.