Or the "brand new siding" is all falling off. 

I believe this area is considered Dancing Bear, not sure if that falls under Sky Harbors territory.

My second one will be purchased by myself and my fiancee and I'm running into being unable to finance the next one with a 5% down or lower because my bank is telling me that it doesn't fall under the correct guidelines because it is a duplex.

And if you have a tenant who falls behind on rent, an eviction, etc., you could be talking about multiple months. 

We have decided to use the BRRRR method.We are each starting with an initial contribution of $10k and splitting the profits (after all expenses and contingency funds) based on our ownership percentage, starting at 1/3rd each initially.My question is really, how do we structure the purchase of our first property such that no individual is at risk of being screwed if it all falls apart?

Most likely the state where the property is located is where lawsuits would be brought if they are something for personal injury like a trip and fall or something of that nature because the “cause of action” arose in that state.

I have also met the victims of these operators.

If the roof falls apart 3 months after you close, will saving $200 a month really do anything to pay for it?

It sounds like I would fall in the regional debt category.

if your looking at memphis you should also consider bartlett, Lakeland and Arlington as places that fall in your price range.