Our buyers pay 12% interest and 3.75 points to you as an investor.

And if you do it right you'll never pay the tax.  

Begin with small, easy-to-manage homes like single ones or two-family homes, or try house hacking to help pay your mortgage.

Someone might wish to make the same cash-flow with double the doors because they generate SUBSTANTIALLY more wealth in the long run from mortgage pay-down and market appreciation with the increased doors and increased use of leverage. 4.

Also u have to try to make sure they are paying their suppliers.A few years back I was building a housing subdivision and my underground guy was giving me pause.and So we checked with his pipe supplier and his Gravel supplier..

STR in those areas do well year round because of fall colors and ski resorts and snow mobiling if they are on a lake, but on the flip side you are paying significant more because they serve dual purpose.  

I have the funds to out down 20% (about 100,000) but wouldn't it make more sense to let my tenant and equity pay for that?

I'm not familiar with your city but I've seen similar group homes pay up to 5x the standard rent and sign longer leases like 3-5 years.

My plan was to start selling a house or 2, in maybe 8 months once the tenant pays down the mortgages a bit more.

Don't let it stop you from investing in the future. in the meantime, how much personal cash flow do you have to pay the mortgages?