Both are in a small market in Illinois, where I have family involved in real estate and construction, so it’s been a great way to jumpstart my multi-family journey.As I'm looking to expand, I’m particularly interested in out-of-state investing, since the DC area where I live is a bit too expensive for my investment goals.

For a small sum like that I would think they could pay you out of pocket and deal with trying to recoup it from behind the scenes on their own.

Your credit score (672) is a bit on the lower side, which may also be contributing to the higher interest rate and cost.Have you looked into working with private lenders or small local portfolio lenders?

Sure- get a full time job, buy a small multifamily, live in one of the units and then repeat that process every year for the next 10 years.

We are invested in a lot of doors, but heck, I really only own the doorknobs, ie, a small portion of each property. 

If you have a crawl space consider putting in a small furnace for the space or gas heater

This creates a new issue because I deal with small notes under $75k in value and need to bundle them to meet a collateral lender's min loan amounts.A partial buyer will look unfavorably upon a hypothecated noteYou guys think there's any wiggle room here for negotiation or would this destroy the note's value from the note investor's perspective?

Landlord can require tenants to be responsible for separately metered utilities, so can avoid waste.Landlord can get annual small increases in rent.NegativesMost of us don’t treat something we get for free the same way we treat something we’ve worked hard to obtain.S8 applicants claim “broke” and don’t like to pay application feesSame goes for security depositsS8 tenants, in our experience, tend to cause more property damage than non-S8 tenants. - Make sure you get a security deposit and perhaps do a surprise inspection of their current home.S8 requires an inspection (mostly health & safety) before approving a lease and then annually thereafter. - Not something most landlords taking care of their properties have to worry about.There are limits to clauses they allow in your lease.

If the dues are exorbitant or there isn't a clearly defined value being brought to owners, maybe pass on it, but I'd say by and large that STRA's are well worth what is usually a pretty small individual investment. 

It works for small/medium landlords, but in the long run it makes no sense for large landlords who may pay to have an in house software developed themselves.