Terrible Setbacks No Longer an IssueA big obstacle that so many homeowners face is the extremely strict setback requirements.

Other challenges:  Tough to plug in security cameras without power, right? 

Challenges?

I would take it at face value and give the tenant the alternative of moving out if desired.

Always challenge the property taxes.Cash flow is not the only benefit.Tenant is paying your mortgage and paying down your principleTax write off on property taxes and mortgage interestSome appreciation in property value but I do not count on it, it’s a bonus when it happens.  

Has anyone successfully challenged an Appraisal and received a higher appraisal after pointing the right comps to be used?

Real estate is geographically locked and can easily face economic obsolescence overtime.... and also much more expensive and harder to diversifyI am heavily invested in real estate but the 100 year historical data available for the stock market is a lot more reassuring for its long term stability then any sort of data available for real estate.  

My current tenants which were inherited when I bought the property are moving next month..So now the real challenge of being a first time landlord is approaching, and my biggest concerns with screening are:Evictions and Criminal Background - How do you check for this?

There's nothing wrong with taking on a modest fixer-upper in the beginning and taking on more challenging ones as you become more experienced. 

this is a challenging question because there are so many different variables. the important question is what is the investors goals?