Do right by them and word spreads, momentum is built and eventually you are raising money from PE firms, family offices etc. if you care to grow beyond your personal network's means. 

The much larger group 1 is the people who are naive and due to their lack of knowledge, experience, and possibly limited capacity, get “suckered” by the scammers.The smaller group 2 are those that understand but don’t care if they’re part of an unethical undertaking as long as they make money themselves.  

I’ve dabbled in real estate too, and I think using a home equity loan can work well if you’re careful.

Maybe have a decent sized pool of cash to take care of the occasional roof repair or personal expense, but almost entirely in real estate?

You're better off to just keep the deposit and cut your losses. 

Just because Zillow estimates a lower value, doesn't mean people will offer lower than the list price.Also, be careful about the laws with the association and renters.

You can’t just rely on the voucher and guaranteed rent; you have to make sure the tenant will take care of your property.

While it's exciting to cash in on a successful investment, the looming capital gains taxes can significantly cut into your profits.

As for your lease, I'd be careful with what you are doing there.

U have to vette folks to make sure they take care of it and just dont sell it .. :)  So with what you have raised and if you want to continue raising money you could follow the same path I did..