As a realtor when I am screening potential tenants for landlords, I have them provide a full copy of there credit score from all three companies, a letter from their employer stating how long they haven worked there, 2 most recent pay stubs, cover page of last three months bank statements to make sure they have some money saved. 

(a) This chapter does not apply to:(1) A person not licensed under this chapter who performs any of the acts described in § 17-42-103(10) as:(A) An owner of an individual freehold or leasehold interest in real estate;(B) In the case of a corporation, limited liability company, limited partnership or other entity recognized by law holding a freehold or leasehold interest in the real estate under subdivision (a)(1)(A) of this section, a member, manager, partner, or officer who has authority to make management decisions affecting the overall policy of the entity regarding real estate activities involving only the interest of the owner;(C) An individual attempting to acquire for his or her own use a freehold or leasehold interest in real estate; or(D) In the case of a corporation, limited liability company, limited partnership, or other entity recognized by law intending to acquire a freehold or leasehold interest in real estate under subdivision (a)(1)(C) of this section, a member, manager, partner, or officer who has authority to make management decisions affecting the overall policy of the entity;(2) An attorney in fact under a duly executed and recorded power of attorney from the owner or lessor authorizing the final consummation by performance of any contract for the sale, lease, or exchange of real estate, provided that the attorney in fact does not receive or have an expectation of receiving a fee, commission, or other consideration, directly or indirectly, for performing the act;(3) An attorney at law in the performance of his or her duties as an attorney at law;(4) A person acting as a receiver, trustee in bankruptcy, administrator, executor, or guardian, or while acting under a court order or under the authority of a will or of a trust instrument;(5) A person acting as a resident manager when the resident manager resides on the premises and is engaged in the leasing of real property in connection with his or her employment;(6) A person employed only at a salaried or hourly rate to engage in the leasing of real property for or on behalf of a licensed principal broker, the real estate firm of a licensed principal broker, or an owner of real estate, if the person:(A) Does not engage in or offer to perform any practice, act, or operation set forth in § 17-42-103(10) other than receiving a security deposit or payment as permitted by subdivision (a)(6)(B)(iii) of this section; and(B) Performs only one (1) or more of the following functions:(i) Delivering a lease application, lease, or an amendment to a lease application or lease to any person;(ii) Receiving a lease application, lease, or an amendment to a lease application for delivery to the principal broker, real estate firm, or owner;(iii) Receiving a security deposit, rental payment, or any related payment for delivery to and made payable to the principal broker, real estate firm, or owner;(iv) Acting under the direct written instructions of the principal broker, real estate firm, or owner:(a) Showing a rental unit to any person; or(b) Assisting in the execution of a preprinted lease or rental agreement containing terms established by the principal broker, real estate firm, or owner; or(v) Conveying information prepared by the principal broker, real estate firm, or owner about a lease application, lease, the status of a security deposit, or the payment of rent to or from any person;(7) An officer or employee of a federal agency or state government, or any political subdivision, in the performance or conduct of his or her official duties;(8) A multiple listing service wholly owned by a nonprofit organization or association of real estate licensees;(9) An officer of a corporation, a member or manager of a limited liability company, a partner of a partnership, or the equivalent of an officer of another form of business entity acting with respect to real property owned or leased by the entity or an affiliated entity under common ownership or in connection with the proposed purchase, sale, rental, or leasing of real property by the entity or affiliate if the acts are not performed by the officer, member, or partner for or in expectation of a commission or other compensation resulting solely from a successful transaction; or(10) A person employed primarily at a salaried or hourly rate by a corporation, limited liability company, partnership, or other business entity acting with respect to real property owned or leased by the entity or an affiliated entity under common ownership or in connection with the proposed purchase, sale, rental, or leasing of real property by the entity or affiliate if the:(A) Acts are not performed by the employee for or in expectation of a commission or other compensation resulting solely from a successful transaction;(B) Primary business activity of both the entity and affiliated entity is not ownership or acquisition of real estate; and(C) Employee is not providing real estate services to or on behalf of more than one (1) entity not affiliated by common ownership.

I have family members that im employing (currently as independent contractors, they will be paying self employment taxes themselves at tax filing) and wanted to create a management company to  write off emplyer's portion of self employment taxes as a business expense; and with the hopes to do the same when i have to pay myself self employment and/or purchasing health insurance. 

Id say it has 3 main areas of employment other than your normal service types.  

Just as it has been difficult for folks with criminal backgrounds to find housing, it is often difficult for some to find employment that may pay more than minimum wage. 

Whatever's leftover at that point is subject to a hefty self employment tax.

Unless you are elderly or disabled, you must be currently employed, and have over a year of continuous full-time employment.

@Vickiel WoodardFirst, congratulations on taking some VERY positive steps under difficult personal situation.I would guess from your post that you have some expenses to incur for repair, rehab and carrying costs, before you begin receiving income.If your intent is to hold as rentals for good cash flow, a fix n flip type lender (where most SFR investor lending is available), will probably not be interested unless they believe you plan to sell after rehab.As you stated, you won't qualify for a conventional or institutional loan, not only because of credit but also because of loan size.The suggestions made by posters so far are some version of(1) sell as is one, two, or all(2) sell one and use proceeds to fix up other twoNot bad advice, depending on your goals.These lower end houses will sell for a VERY low price in relation to their rental income because (1) tenant types will most likely be a problem or at least be high maintenance, i.e. chasing them for rent, high turnover, life crisis, employment problems, etc, and (2) unless area undergoes gentrification price increases will be non existent (3) effective outside property management is probably not available.So, if you are able and willing to manage the property and tenants yourself, keeping the properties as cash flow rentals can be a VERY lucrative activity.I would find an experienced contractor, and talk him into either (1) partnering with you by providing his services as a contribution for buying an equity interest in the houses or (2) accepting a lien on the properties in lieu of immediate cash payment to perform the necessary rehab and either making monthly payments to him to pay off the lien once the units are rented or paying him off by refinancing once the properties are rehabbed and income is established, though as mentioned a loan would be somewhat difficult to accomplish.An alternative is to attend your local REIA meeting, and discuss a partnership with some of the more passive investors.BTW, are you paying typical credit card interest rates of 12-24%, or did you get an introductory deal giving you a low or no interest loan for 6 -12 months?  

Speaking of my day job, I am a licensed attorney working in public employment while overseeing two non-profits. 

All of the banks I have called require a MINIMUM of 12 months guaranteed employment for me to qualify for a conventional loan.