This is the most complicated piece because you are essentially the mortgage originator (which might run into licensing concerns depending on how many times you do this and your state), and you need to make sure the person who is buying is a good borrower.3) close with a title company or lawyer (state dependent) who knows how to deal with this type of transaction4) set up an account with a servicer to collect the money from the borrower (not required, but highly recommended from note buyers)5) collect payments

I personally am impressed by both Jack and Seth and I know the methods they teach work because several members of my group have had success with raw land investing using these methods as well as methods from the other programs available.

She has an impressive portfolio but I just lost some respect for this agent - I reached out to help a Bay Area investor as an agent not have her sell him an expensive coaching program. 

@Greg Dickerson I had collected $1000 non-refundable EMD.

In our24 years of experience, managing almost 100 S8 leases currently, the average S8 tenant has a FICO under 580, numerous collections from utility & cell phone companies, doesn't want to pay a security deposit, much less an application fee and claims they don't know how to fill out their S8 paperwork despite being in the program for several years - hint: they want YOU to do it for them.Most, not all, are eligible for government assistance due to a funeral-march of bad choices.REALITY: you are trust trading one set of problems for another.You can succeed with S8, but you need to understand the challenges and plan accordingly.

The rents are collected weekly instead of monthly, so there are more rental periods each year, but I assume expenses may be higher as well.Does anyone have experience with SRO real estate?

The guru I paid $40k to mentor me told me I could outsource everything and just collect a check in my mailbox each month.  

That said, unless the amount you end up losing is substantial it likely won't be worth going after with the cost of litigation and also the effort to collect. 

if my wife is paid 30% of collected rents to manage the property it will reduce my Schedule E profit.

This will impact you financially, because you will have more vacancy and each vacancy will cost you more money to get it rent ready again.And on the maintenance side, GE appliances or your local plumber don't care what you are collecting in rent.