Moreover, for someone in your position just starting, it's best advised to partner with an experienced individual to mitigate risk and adequately learn the process.

That being said my residential rental will have a positive cash flow of $500 and I plan to rent out this other side of the duplex immediately and will have a balance of 600 to cover for the mortgage.

Is it a wrap note, where your seller-carryback note incorporated the first position note and the buyer pays you in full every month, and then you pay the first position lender?

Really expedites the time it takes to reach FI when you can completely eliminate your housing payment and get into multis for such little down and start building equity/cash flow with each one.

Do you have equity? 

Hopefully in a positive and helpful manner rather than judging and criticizing like some, which thankfully is pretty rare. 

Actually, the way you describe SubTo can be called "equity skimming".

If so that will give you equity and some ownership stake?

Their plan is to raise rents (on the poor remaining souls, improve infrastructure and exert some sweat equity. 

Same thing with any investor you get in bed with.With time you can work some equity into those rentals and when interest rates come down you will be in a better spot to sell a couple SFHs.