If a renter absolutely must leave due to a family situation, health, work relocation, etc., and they can't do anything about it, it's one thing.

Their existing lease with the former landlord prohibited pets, prohibited smoking in the unit, and prohibited unauthorized persons living in the unit.  

Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.

If you have the financial health to cover the monthly loss (difference between overhead & lease payment) and hold for appreciation, that's a different topic.

Mom and Pop manage it, with their motivation to sell being health and age related.

You made a good point of what if something happens.... need to think on that a bit more because while I would say yes I am comfortable about having the reserves there is no telling what happens job wise, health wise, etc for a decade... not to be morbid.

The downside is, the current tenants all have month to month leases, there are pets, a lot of maintenance has been deferred (but would be completed prior to closing) and there seems to be a high turnover rate for 3 units, however, I believe this can be attributed to poor management and the lack of long term leasing. 

And demand for this small may be less.                   2 or 3 bedrooms might attract families with children - more potential damage & pets (but higher rent per unit & more demand).

The bad:credit score is lowIncome is just barely over 3XrentThe good:has been in the same job over 3 years.Has a solid rental history with no evictionsHas a clean background checkCar is paid forMore info:  this is a single guy, 22 years old, no pets, but is a smoker (at least he's honest about this).We really want to get a tenant placed and we haven't had any other applicants. 

Hello,My tenant paid a non-refundable pet fee when they moved in 2 years ago and would like to renew the lease.