I work closely with all kinds of investors as my company provides self-directed retirement plans enabling our clients diversify out of the stock market and invest into non-traditional assets.

I agree with the points in the previous post.Seller financing (at better than market terms) is good for buyers because they may be able to buy more building on a limited amount of equity invested, and it is good for sellers because it may enable them to get a higher price. 

Our combine gross monthly income is $4,800-$5,200 (I know people ask questions a lot, and get many "it depends" answers; I am hoping that by being as descriptive as possible, I can enable the best answers possible).

I was initially seeking opportunities of low and no money down, but realized that is just not my style as I prefer to be responsible for my own success so I've been focusing on paying down my debts to further enable me to save up for a down payment and so far I've paid off nearly $20K in one year!!

I prefer not to go into too much detail, but can't just sell my house, as I have other obligations and ties here, and also have to live somewhere (which $270,000 wouldn't enable me to do in my area).Is it "better" to have the bank foreclose on the SFR in Birmingham or do the short sale and sign an unsecured promissory note which will not be paid?

This enables me to do a better job at marketing the property.

William,If you want to screen out the "WarZones" before you venture out, try this method.My residential security provider offers a feature on their website that enables you to access the overall crime index for any given zip code with its street map.

This includes everyone from the people that join a REIA for $150 per year and go to the monthly meeting and weekly workshops, to those that spend $50,000 on a mentoring program.And out of all these people with the ambition of being full time real estate investors, sitting back and living on their passive investments, sending their managers to collect the monthly rents while they vacation on exotic beaches, all these 30 million people who had the drive and ambition to spend time and money to try to reach this goal; how many do you think did obtain the investment results enabling them to build a portfolio of real estate or real estate related investments providing a sufficient enough income for them to retire in a lifestyle of fun and carefree living?  

Even if you didn't make much, you learned some valuable lessons that will enable you to be successful in the future.

That will enable you to minimize your tenant turnover and maximize your rents.