I've purchased two properties personally utilizing seller financing and represented at least a handful of buyers acquire properties with private mortgages over the past five years including friends and family members.

Tennessee doesn’t have personal income tax but if we create an LLC we would have to pay state income tax.

I have locked up one deal off the application and have offered in person on 2-3 other deals.

Be thankful they are taking this step on their own to ensure they don't get behind and stick you with unpaid rent.I'm sure how much they may be approved for varies on a case-by-case basis, but I have tenants who have paid the full rent for multiple months through COVID rental assistance.Your role is limited, and in my personal experience requires just a bit of information on the balance due and a signature.

I’ve attached some pictures for reference.

@Adam SchneiderRecommend exploring as many sources as possible to get referrals AND cross-reference them to get as much accurate information as possible.Check out NARPM.com, BP’s Property Manager Finder, etc.Also, encourage you to learn from the mistakes of others - by reading posts here on BiggerPockets about owners not having their expectations met by their current Property Management Company.

While I am a licensed agent but I do not focus on MLS deals.I've been personally investing in Detroit since 2019 and have 12-doors there now.

Have you seen any in person?

There's no reference to LLC or corporation in that definition. 

Ultimately, the best market for investing under $250k will depend on factors like your risk tolerance, investment goals, and personal preferences.