You need a reserve to handle unexpected costs, particularly during the first 1-2 years of ownership and learning how to manage the property. 

I do not personally use him based soley on the fact that the firm is virtual.

Right now, the best offers around me are for some 1.3-4 million, that only generated around 100k per year gross, so there would be a high chance of not cash flowing, and paying money, especially with a commercial loan (these buildings have more than 4 units).I was thinking that although the rental itself does not generate money, I would be able to deduct the mortgage interest, and depreciation from my personal w2 income and would be net positive.

Hey @Chris GarnesI just came across your post, and it immediately reminded me of a project I handled with a colleague in San Diego, Dennis Bragg - https://www.biggerpockets.com/business/page/3607  - You’re sitting on some serious potential with these two properties, and your plan to step back from construction while finishing them makes total sense.For Home 1, with no mortgage and a prime design upgrade underway, you’ve got flexibility that most investors would envy.

I recently read a book that mentioned there being a lot of power and benefits of a personal corporation but I'm curious as to when a corporation is actually beneficial over the latter. 

The FMR for a 6 BR house is over $1,800....one person's trash is another person's treasure!

You can find it through the MNREIA web site or email me if you have any troubles.Type @ and the first few letters of a person's name to link.

Personally I would pass but if you go forward I would do a lot of research on the group you are renting to and get a very large security deposit to cover damage. 

Simplify the structure as much as possible, have clear roles and responsibilities that are not overlapping (meaning only one person is allowed to make certain decisions) and a clearly defined exit plan.

Are you referring to personal losses or other people had losses?