Personally, I do not like any strategy or approach that aims to benefit from the misfortune of others.

I'm not accredited, and unless my business explodes, it's not likely I will be in the next few years.

The big thing to me would be how high is the demand in that area?

It will familiarize you with the basic terminology and benefits.

That is me reading between the lines, and I would suggest partnering with someone who has the money.

I am the boots on the ground and provide all of the time and my partners supply the money.

There's no problems living next to your tenants, just tell them your the manager NOT the owner to avoid guilt tripping.You have to analyze the deal 1) while you're living there 2) when you move out.

so you can easily do some background on the principals..

You didn't think about there life, where there motives will shift too, what comes next 1, 2, 5 years down the road. 

If I read the story correctly, your client did not report rental income.