You have to take the extra step to calculate your cash on cash (COC) return to get a more complete picture. 

I believe its a more recent thing as the tenants (moved out just before I purchased the home) would have certainly not put up with it.

I would suggest a more reliable plan for income. 

As far as the equity, standby for a more solid answer on that as I'm reaching out to my folks to see who, if anyone, has any equity available in their properties.

This way landlords can let their tenants know that they must complete the initiation by X time of day so the payment will process in a more timely fashion.

That is good since the seller is more likely to allow a more intensive inspection than a bank would be if it was a REO.

Commercial market is a more logical market (not so much now, but generally speaking), which means that everyone understands, expects, and prices CapEx into the ownership costs.

If you know your credit score, you can call around and get hypothetical rates just to see who you want to do a more in-depth credit search for your pre-approval letter.

I have done some research on the internet in regards to the process but I was wondering if anybody can lead me into a more detailed direction and let me know if this is a good strategy for certain homeowner situations?

I would look at a Hard Money Lender or team up with  a more seasoned investor that has the money.Happy Investing!