The cash flow is great, but I am looking for a lending source---private or a financial institution---to buy many more like these---they need to be in small cities though.Property management is not a problem, since they own the house and will fix it up themselves. 

The participants that join our program understand that.

Considering that DSCR  = NOI / Debt Service and NOI = Gross income less operating expensesWhen institutions are looking at operating expenses for a new purchase, how are they calculated?  

Additionally, there is other rules like residency rules that may exclude you from participating in ACT 60. 

I want to try and find a set of bigger buyer communities or larger institutions that can reliably buy 5-10 properties per month in the following states: LA, TX, MS, MO, TN, GA, OH, FL.

Under the IRS rules, a person  qualifies as a real estate professional if: (1) more than one-half of the personal services the taxpayer performs in trades or businesses during the tax year are in real property trades or businesses in which the taxpayer materially participates, AND.....(2) hours spent providing personal services in real property trades or businesses in which the taxpayer materially participates total more than 750 during the tax year.Like @Greg Scott and @Russell Brazil mentioned above, I don't believe that you would qualify as a REPS, but if you are going to try it, make sure you document it very well (i.e. with some kind of proof, like time cards, mileage forms, and/or receipts, etc.) so that just in case you do get audited, you at least have something to provide to the IRS agent. 

Hope your "far away from other rental" units are close to some commercial.City or County housing authority keeps participating landlords on file and are usually happy to refer folks.

Here’s why it might be a smart move:Maximize ROI: With leverage, you can control a larger asset value with a smaller initial investment, potentially increasing your returns as the property appreciates.Preserve Liquidity: Keep your cash available for other investments or emergencies while still participating in lucrative real estate opportunities.Tax Benefits: Deductible mortgage interest and expenses can lower your taxable income, enhancing profitability compared to an all-cash purchase.If you have the means to buy with cash initially, you can later refinance to unlock equity for further investments or improvements.

Does anyone know of any institutions or people that would lend cash similarly to a line of credit or some alternate option that would help us with buying homes to move into our properties?

The monthly payment isn't going to get bigger, all kinds of crazy taxes to get out of the real estate eroding the payments you do receive every year and no opportunity to participate in appreciation.