It is in the contract that I can hand the property back to them at anytime and specifically if the property becomes vancant. 

If you are looking to grow and get into REI in a big way, aren't afraid of a bit of risk, want to be actively involved and don't mind getting your hands dirty, I would encourage you to buy multi-families in C/D areas. 

If buying at auction, obviously you need to check into before hand.

The meeting with the property manager, his right hand man, and his money man, lead to the perfect advice that comes right out of Michael Lewis' book Money Ball.

On one hand I understand your point that not all sex offenders are what most people think of.

On the other hand, the market in Indiana where we grew up is very stable.

but in my opinion and I have been working in the asset class for 2 decades now and owned close to 500 of these.. if you have this issue now there is a high likelihood of repeat offenses..Many times the tenants themselves will take the items or hand the keys to their cousin who strips the home.. 

Do some homework on Zillow - 800-900 for a 1 bedroom will not happen unless you are in the hip urban core of KC - I dont know the KC market like the back of my hand but no one will pay that much for a 1 bedroom - thats insanely high.  (* of course hip urban areas or nearly brand new with lots of amenities would be exceptions to the KC or midwest rule imo)

With that said, after countless tax lien properties, hand written Zillow profiles; 1500 wrong phone numbers (a few right ones) an angry old man named willie that hung up on me.

I also use that number as a reserve because many banks require that to have on hand and as a note to myself of what I need to have on hand in case of a 3-month vacancy.