A few banks started to do this and saw the profit in it, then other banks were not as profitable so they lowered there standards and then we came to the whole fiasco of forging documents, lying.Case and point I spoke to someone last month starting a fund with 0 I repeat 0 experience in what they were investing in.

Is there usually a premium paid above what market rent is , or is there a profit sharing type of model used ?

The fines will eat up at their profits.

Denver is a reasonably safe city compared to many and our public transit is finally catching up, albeit slowly.

Good luck to you on your transition into the world of Real Estate investing.

Which on $7K upfront isn't bad, but if something goes wrong so does your profit.

Is San Bernadino County still profitable? 

Everyone has a different number on the amount of profit they are willing to accept. 

Sometimes if you pick a market first, it is easier to find who operates in that area.As part of your research, try looking at:How to Find the Right Turnkey Real Estate Investment Company for YouThe Best Types of Markets for Profitable Turnkey PropertiesandWhat to Ask When Working With a Turnkey Provider

I would probably take advantage of the hot market and take the profit to invest in higher cash flowing properties closer to your location