These buyers usually approach the seller directly because they could never qualify through a bank and are high risk.

Although in the landlord business of course your tenants are on a razor edge more than most home owners.. with lower rent areas of say 600 to 800 a month and 3X rent to qualify pretty tough to live on 1800 to 2400 a month for most folks and one little upset and boom 

Within the next year, ill be doing work to the property laying down some sweat equity.My question is this: In everyone's experience, has nicer (not the cheapest builder-grade stuff you can find) materials translated to attracting a more qualified and responsible tenant?

You can qualify for RD if the property is in an area deemed to be rural by the USDA, and you meet the income requirements.

A qualified real estate agent can help you understand the potential mistakes you could make, what red flags to look for (like that below-market listing), what fair market value is for homes in the area, and any oddities about the market.

I don't want to purchase another investment property, and then discover that I don't qualify for a loan on a new primary residence due to DTI being too high.

Getting a loan was somewhat challenging due to my W2 income, but I was able to get a lease on my first place to help me qualify.

Main reason to go FHA over conventional is if you are unable to qualify for conventional, as FHA does have more leniency.

It comes down to your comfortability.With 2-4 units, you would qualify for a higher loan amount because they factor in the income from the other units.Whenever I write offers that are not accepted, I always ask for feedback as to why the other offer got accepted.  

The potential tenants are aware that I'm the PM and neighbor.Rent: $1,600Tenant 1: a few years about of school, excellent previous landlord references, two jobs, seemed clean cut and put together, Gross Income to half / full rent: 6.77x Half Rent / 3.3x Full RentVolunteered dad (well qualified cosigner) who agreed to be cosigner and passed all screens.Tenant 2: Similar life status and feel as Tenant 1, lives with parents (no rental history), toured apartment with his mom, Gross Income to half / full rent - 3.6x Half Rent / 1.83x Full Rent.Would you require a cosigner for tenant 2 or is tenant 1's dad enough when combined with both incomes?