The first misconception is that you can declare a property headed onto the market only S8 eligible, refusing to consider traditional applicants.

I've done a lot of wraps and subtos and highly prefer the seller-finance strategy for a lot of reasons, including offering the opportunity of homeownership to those otherwise rejected by traditional banks.

@Neil Smith,Yes, Traditional IRA can be rolled into Solo 401K.

Once you do this conversion you can't change it back to a traditional long-term rental. 

The list goes on.For mission-critical items, you want quality, not cheap.

I have spoken to lenders about traditional financing and also DSCR loans.

Quote from @Matt Wan: Can I purchase a property using a traditional mortgage without being physically present for any part of the process?

Wanted to get some thoughts from more seasoned small multifamily investors on a few items or any other suggestions:- Any specific pros/cons of any particular states in SE (TN, AL, GA, NC, SC) to consider?

$540 is not unreasonable for a home of that size and the items you mention.

In my personal experiences a lot of structural items start with bad drainage.