Mainly need someone to install windows.

I foresee it becoming a hotbed for medical professionals and chapel hill residents migrating there for the tax benefits and roi on selling their chapel hill homes and moving there....

We want to invest in buy and hold properties, but we feel that pursuing this strategy will better benefit our long-term goal due to the potential cash flow and appreciation of a property (if we buy right).

I suppose they would receive the tax benefits, which is something we want. 

You touched on the main points exactly, knowledge, hard work, and capital are key in this business. 

I'm considering starting an LLC that I can run rental income and expenses through for the main purpose of starting a retirement plan (probably a solo 401k) so that I can start socking away some income into a tax deferred account.

Or is it more advantageous to start off with a portfolio lender that will work with you so you have the benefit of having an established relationship with the lender so when you get to 10+ properties, they're more willing to work with you if the numbers make sense?

Throughout the years, my family has bought and flipped several properties, so I have had the opportunity to be exposed to the benefits of investing in real estate, and now I am ready to venture out into the investing world myself. 

The main thing is to know that the two options you present offer completely different levels of time, effort, skill level, and risk.

I find that strange considering that the REO stated it would qualify for a 203K loan program and required the purchaser to only use that program for the Homepath if there was a loan involved.The reason it was questionable was it was a lot with one address that held two houses on it (a main house and a mother-in-law like guest house).