They are using and encouraging state A.G.s to utilize UDAP as a broad method to prosecute lenders not in violation of anything concrete.

Of course A/R quality, deferred maintenance, your credit score, appraisal value, down pmt, all matter a lot too.

An experienced investor with capital might be able to renovate and attract higher quality of tenants.  

if you want the quality of plywood cabinets, with a little more customization you might check out cabinotch.com .

Not necessarily in the worst neighborhoods, but places where average real estate prices are relatively low and the quality of life is still decent. 

I recently read in Malcolm Gladwell's book "The Tipping Point" (pg72) that "what separates a great salesman from an average one is the number & quality of the answers they have to the objections  commonly raised by potential clients" or sellers in our case.  

We have kept in mind that our rent should be priced just below market rent prices for longevity and quality of renters.  

I would encourage you to look for notes on higher quality/value properties.

If the risk of a lender initiating its DOS clause and is of paramount concern in a Sub 2 then there are other methods to mitigate this risk.I've bought property using a land contract of sale, that in itself has a lot of similar risks of a Sub 2 transaction remaining unrecorded, and have been researching Sub 2 transactions.

The biggest question is about your quality of life.