If the property owner is a "long time childhood friend", then she may be willing to cut you a deal where she pays for the closing costs and/or she may contribute to any repair/remodeling work that the property may need.Once you move in you could house hack and start saving money so that you can acquire more properties. 

Should I start an llc/property management or just take my cut off the monthly net?

I’ve thought about a million different models but the truth is even if they make sense in theory I’ve come to the conclusion they may be too convoluted to explain, so I will try to keep getting 2.5-3% and if I have to cut commission to gets deals done I’ll do that as well, but I think paying some percentage to sell a home is probably here to stay just possibly at a lower sometimes.

Cut the losses.  

I'm guessing you've already looked at your expenses and cut all of the extras.

Evict for non-payment and cut your losses.

For the first time this year, the local government agency has cut off the water to all houses from either 7am to 5:30pm, or from 12:00pm to 5:30pm.   

We moved into a new construction house and have had multiple sewer smell issues but never consistently, one took a year to figure out...basement bathroom someone drilled a hole in the drywall (basement finished after moving In) behind toilet to run cold water line but hit the plumbing stack and cut a hole in it.

lolYes, you can cut your losses fast and then have a 0% ROI.

Just want to add that the Fed is planning to cut rates later in 2024, which should lower mortgage rates, so you might want to wait until fall for refi or HELOC.