You're betting on appreciation which is not smart IMO, especially with neg cash flow.Okay, maybe a third too, house hacking.

third, you had the HUD inspection (and presumably other inspections?)

When a tennat has not learned the lesson after a 2nd late a third is their last.

Airbnb oneUnit, live in one and have long term tenants in the third one.

Send a text to tenant  Rent is due on the first of the monthLate on the Second Eviction process starts on the third(Follow this process every time) You are running a business.

@Megan RandolphThe closest is buy a non performing note, get it reperforming then sell a partial to get your equity back to reinvest in another deal and you will also keep payments on the back end.Example, buy a $30,000 UPB non performing loan that is paying $400/month with 120 months remaining 10% interestYou buy it for $15k, they start reperforming then you sell 15,000 worth of payments at 10% to investor which may be 60 months (numbers not verified and for example purposes).

I could lose over $300k if I don’t close on the deal, the seller is ready to back out so I may have to sue him for specific performance.

Initially cash, and then I performed a cash-out refinance.

It's will probably be easier to find someone local to the market you invest in since they know the market but I would try to build both in case one is unable/chooses not to perform on a given deal. 

Even though the agent indicated that all units were renovated, I asked to see pictures and perform a walk-through of the unit prior to submitting an offer.