I definately get the not buying negative cash flow part, that would be juat plain dumb haha.

Define what "..a little bit" is equal to in actual dollars.What, in actual collars, would the CF be if you rented out both sides?

Different entities probably have different defined criteria (ex. crime rate below x% is an A), but there is no centralized governing body to determine classifications.

The lawyer can also help you define the what if's and how to deal with them.  

Defining this will paint a clarity on your day to day events.What's needed to get started?

If your group should shift into a more passive approach and go the route of pooled funds for (syndicated) lending to investors you would be very well suited (and much safer) to get in touch with proper legal council to organize (SEC attorney, CPA)As far as organizing however, this is where I would start; Define the active or passive  REI approach and proceed with legal formation accordingly.Hope that helps! 

They all are Hard Money rates what I define as "Tier I" and "Tier II."

@Sierra Johnson I don't think there is going to be a real estate crash (I define this as >20% drop).

The trick here is going to be defining where you will be in the city.

This shows total lack of budgeting and is a sign they will only fall further behind with more excuses.5) Have a defined eviction process, but allow 3-5 days of flexibility for inevitable slow-pays.6) Find handymen that live in an area only 1 Class higher than your property.