For example, if I do S/P top stocks, I could get around 11%. but if I did real estate and I have a 800 credit score - could I do real estate and make it work harder doing turn key Multifamily. 

You would want to look for an owner that has a loan through a bank or credit union or one that has no mortgage. 

So no, tis is a horrible deal for you.Now of course I know nothing about your property (since you provided so little detail) so if this is a huge 5 BR house with pool on a lake somewhere, then you need to adjust my numbers.

You can decline them off their credit, background and for not having 2 past positive references.

@Hank Bank BRRRR is probably want you want to do.Buy, Renovate, Rent, Refi, Repeat.Before you go all in and either find out you don't like being a landlord or you make costly mistakes, start with just the next one.You'll have some challenges with tapping the equity in the townhouse:1) What loan amount can you qualify with your credit & income?

of course the sale of hurricane damaged houses also confuses the issue (my house had no such damage but is only about 4 blocks from houses that did). 

You need to have reserves in either cash or credit regardless of the situation. 20k can go away in a blink.

Most banks won't want to come in with a line of credit that is second lien on the property.

Those are people who have cash/credit and will lend to you if you have a good deal locked up. 

@Andrew Self there are attornies you can hire to resolve your credit issues.