I’ve even priced several models from different manufactures and found what I think would be the perfect piece of land to where if I could get the funding my bigger plan was to divide about half the acreage into 8 or 9 parcels which would be enough to pay back the investors/loan and then take the other half of the acreage and place tiny homes around each on their own couple acres.

There are many reasons why I haven't pursued the arbitrage model, but mainly that it takes too long for the ROI after investing all your time and effort into buying furniture and renting and paying utilities.Let's say you rent an apartment for $1500 and you spend $7000 to furnished it.

You don't provide enough data to know.Every product is only worth what you are willing to pay for it. 

I noticed that the previous owner let them pay half the security deposit and the other half later, which is a red flag.

I don't see them showing up or paying any of the back rent that's due to become current if they wanted to stay.

My guess is that you will pay less per month with multifamily than a single family. 7.

If it's already turnkey that means you're paying higher rates than necessary when you could put 20% down and get a DSCR loan with lower rates and fees. 

And I would love some passive income or at least someone to pay my mortgage until we can pay it off maybe.

@Jon D. some questions, the answers may help you better focus.1) Why did you pay your primary mortgage off in the first place?

After all, you have no evidence they agreed to pay rent or any of the other terms.