I had trusted the wrong people, but I will invest again now with a more money orientated approach. 

This simplifying approach slowed things down and in so doing sped up my progress.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

Further, the property manager is counting on the MLS and other agents to bring prospects, which seems like a bit of a passive approach.

It's great that you've been absorbing so much knowledge and are taking a strategic approach to getting started.

Closing real estate deals in any economy requires flexibility, adaptability, and a variety of strategic approaches.

@Jim PfeiferI think those of us that have made the mistake see the importance of a good sponsor, but also taking into consideration our investor goals.Passive investors NEED to learn the business of investing in real estate, and have to approach it as if they would be managing the deal themselves actively.That means there needs to be work done on the front end, like underwriting, selecting a market, understanding buy right criteria, etc.You can't just focus on a good sponsor, and pray things work out.  

I have learned a ton on these forums though I’m posting for the first time.what does not get mentioned enough is that if you want to scale slowly using low money down FHA/conventional loan approach and live in there for 1 year, at a time, you should not write off all the rental income on your most recent tax returns for the existing rental properties.

It might serve his needs too, but his approach fits my temperament and how I want to do business too.

Could you recommend any resources or provide advice on the best way to approach this?