It would depend on location and "category" (a C level vs a B level for instance).

I have seen some properties on MLS that I contact my realtor and they may know right away the reason it isn't selling from showing it previously, or they can review the realtor comments that aren't viewable by the public on MLS.Other potential reasons I have seen properties listed on MLS for a long time. 1) Some investors may not be comfortable inheriting existing tenants.2) It may be it is a class C neighborhood. 3) Structural issues.

C- Raise the funds from friends and family.D- Just use cash from savings and start small.E- Pull from 401K and really take a risk on my returns.

So, that adds to the risk more-so for a novice who doesn't know how to factor in that risk. c.

The answer is NO, based on the language of Section 152(c)(3)(A):...an individual meets the requirements of this paragraph if...

As everybody else stated review your basic protection with P&C and umbrella coverage and run your rentals like a business, easier said than done.   

Quote from @Allan C.: @V.G Jason I'll disagree with you here.

Quote from @Priscilla C.: Quote from @Benjamin Aaker: Since you will be renting it out you should get a conventional loan.

I just wanted to piggyback by saying you can still find those kind of deals, but like Nicolas was saying, it's probably going to be on the east side, in C- to D neighborhoods. 

(c) Submit offers - real estate agent would help with this.