The first year or two isn't always going to look great on paper but remember when it comes to Real Estate...

Same thing as Bruce with the flood zone...on paper was located in a flood zone but the actual risk seems very low and the owner of the last 40 years never had a problem. 

I kept the application paper short and didn’t state qualifications on it.

It might work for your borrowers, however.If it’s ok that you are not the direct lender, but you still want to control the deal and take a cut, there are other options, so you don’t have to say “No” to prospective borrowers:You can originate loans using white paper offered by many larger lenders.

My decided brother's land was bought from tax lien and he got court paper

This is for the purpose of having a strong foundation that will minimize risk from any “Black Swan” event and will also increase your long term cashflow.When investing in real estate or business in general, one should always look to protecting the downside first before looking at the upside.Just my opinion 🤷‍♂️Regarding your $50,000 budget for turnkey.It will mostly be C or D class which I would advise against.High crime, lot of volatility, unemployed tenants and property management collects rents with a bullet proof vest and shot gun.On paper things look great, in real life they are much different.On the other hand, if you DIY in a markets like Ohio, Michigan and Indiana.You can definitely be into a B class asset for $50,000 purchase and rehab.Wishing you much success

Then I ended up in bed with the bowl and a roll of paper towels!

They were very respectful of my space, despite all the commotion, and they even brought their own toilet paper and butt wipes, ha ha! 

If my wife and I are both members of the same LLC then we will have to file this K-1 paper?

Again, you should be able to put this into motion as long as you start a paper trail now, if you haven't done so already; you want accounts from different Tenants covering different instances in writing to show a pattern.