Fire department will inspect the property at various stages to ensure the property safe to live3.

As Jonathan mentioned, this is a technique for experienced investors, not something a beginner should play around with.

I will probably only be budgeting to use up to $600k to be safe, which I know will be tight depending on what location is selected.

Usually, we'd be really safe and happy with our responses for someone like you but I need to make this one be a little more firm if you don't mind - you are not to do anything that you don't understand.  

I just don't think it is a safe business model UNLESS you can take the property yourself if you can't get a buyer.

It seems safe to assume there's a market, but obviously we'll need some more research to confirm that. 

The move is always whatever SAFELY leads to owning more assets.

As for the shed I was recommended to allocate it the same way split between the properties therefor making it fall under the De Minimis Safe Harbor amount of $2500 allowing me to expense the cost rather then carry it as an asset for depreciation.

So it is safe to say, the business has to pay for 100% of it's operations, from about 7% of it's intake potential client's. 93% are JUST an expense with NO revenue produced. 

Capital partner is a very safe way to go.