@Barre Gambling I am curious... in your opinion, is our area in central NC underserved outside of the Raleigh-Cary-Durham MSAs?

I'm not saying you can't make a decent return on rentals - I and many others here have done great with it - but if you have a well-functioning, profitable business that you know, why would you gamble money into Memphis *******es, to put it bluntly? 

In your opinion, what is the most effective way to establish an LLC? 

Establishing a separate entity, such as an LLC, for your rental property business could provide more flexibility in claiming deductions associated with business-related assets like vehicles.

It's also worth noting that, given my community development background, the intent is to help them refi into traditional financing after they've established a payment history.

This would be my first foray into real estate investing... and I absolutely 100% agree that the best move is to establish a track record using my own money and conventional loans before considering using private money.

It's a lot of work upfront but once the team and systems are established it gets easier and as you get better you can expand to another city. 

Did you get a few months of the home's utilities just to establish a baseline of what the cap should be? 

Like @Bruce Woodruff said you have to establish your goals and "why" REI or homeownership should be in your life.

I'm a very analytical person who won't start a new venture without first gaining a solid understanding, establishing the right framework and connections, and ensuring that I'm securing a great deal.