So we started thinking of ways we could entice residents of the neighborhood to rent rehabbed homes without the fear of not being able to afford rent and the property generates guaranteed rent role without high tenant turnover or encountering high vacancy rates.

Yes, but those times also brought out real eatate agents who were now modification gurus, attorneys getting people to file bk’s, and scam artists telling people what They Wantes To Hear, Taking Their Money And Then disapeared!

What potential issues may I encounter along the way?

I've encountered situations where the homeowner abandoned the property and the front door was left unlocked so an appraiser was able to run over and get it done.

These are called private lenders and likely what you are experiencing is a scam

@Lamont Marable Be careful encouraging others to use "Morris Invest" if you do a search here on BP you'll see hundreds of posts of investors who have been scammed and lost thousands of dollars using them.I would avoid them at all cost and always do additional research when getting recommendations or seeing a t.v host face on YouTube selling 40k homes.

HI Gurus   I encountered a multifamily apartment deal which was built in 1954.

Most lenders who charge anything else before closing (especially in excess of a couple hundred dollars) is a scam, but some may be legit. 

The same $100,000 spent on one house will bring in $850Rent/Purchase percentage better with cheaper houses.If someone trashes a cheap house, I clean up and move onIf someone trashes an expensive house I am sickI am a cheap house buyer So have you encountered any problems with all your cheap houses being in bad neighborhoods? 

It is hard to say anything wrong with the theory or say this is a scam but this investment turned out being nightmare to us.