List your property on corporate rental sites like Blueground, Zeus Living, and Furnished Finder to attract high-income tenants. 

High demand for Section 8 housing.

Is it possible that at times you lose money (such as soft costs - paying for property inspections for example and the deal ends of falling through)?

you can use a DSCR loan if your DTI is too high for conventional. 

Houses in my development have sold as high as 585k, my house was appraised for 475k as is.

It's not over until the end of their lease term, or the rerenting of their unit earlier, or the remaining tenant agreeing to accept 100% responsibility for the unit.

At year end you’ll get a summary and a tax form.

I'm okay with a high interest rate up to 15% because I can still breakeven on the mortgage but not sure how to finance this deal without losing my initial payments

Steps: you go under contact with the owner of the property, you assign the purchase and sale agreement to the end buyer, the end buyer closes, and you get paid the difference between the agreed-upon price between you and the owner and the intended purchase price of the end buyer. 

I did one house I may end up taking a small loss on, we'll see.