We take our monthly management fees (and any other expenses that occurred) out of the rents, then make the monthly distribution to the owner. 

Unit 1 where we live has a basement that’s rented out on Short-term rental/Airbnb (with average stay per person < 7days).

It can also get expensive fast to get title searches done on a bunch of properties and then not win any of them at the actual auction. 4) YES!

I am under contract for 3 properties, however there is one thing about it, one of them, its located in South Memphis zip 38109 (Mallory area).I know I know I live in Memphis, I know that the area is bad, however I am feeling that the market it pushing investors towards the hoods of memphis because it is getting expensive (even Frayser is getting crazy expensive which I find crazy), I did a few visits in that specific neighborhood and I honestly didn't feel it was really really bad as the rest of South Memphis, I am really not worried about tenants paying on time in my rentals because I always focus on Section8.Was wondering what are peoples insight in regards to investing in those areas with section8 tenants?

A lot can go into larger deals as an example and of the borrower does not perform, no one likes to get caught on the hook for those expenses.

Preferably the one or two properties with the lowest values so you can increase the overall average for the value of the property.

Hard money is expensive and they will not hesitate to take the house from you if you don't meet the terms of the loan. 

Often times a big expense of buying an investment property is that generally it needs work done to it.

I think they are just too nice for the average distressed seller. 

When you look at average income vs. purchase price, the current market is unsustainable.