It is easier to drive through some neighborhoods an show someone than it is to describe. 

I'm targeting properties in the $100K - $200K price range, with the intention of using traditional mortgages for financing.From the outset, I do not plan to set up an LLC; first, because I don't think most banks will lend to an LLC, and secondly because I don't think such relatively small investments will arouse the attention of ambulance-chaser lawyers. 

All rents and expenses go through these accounts and it makes it easier at tax time.

If you have a general idea of the returns you'll be targeting with the smaller purchase nearby simply compare the two from the ROI and risk involved.

My best tip after you identify potential target markets is to start by finding an excellent property manager--during your interviewing process, you will also get educated on the area and what to expect.

In order to make payment easier, I am considering giving the bank account number so that deposits can be made directly.

You might also confront them about the person they moved in, but the easier issue to get them out on would be smoking.

I think this makes our dilemma a bit easier to deal with.

I hear 1% is hard to find in LA while much easier in Cleveland for instance.

Much, much easier to go through a lease with organized sections with someone else.