I plan to go the typical route , get a bank loan, bank appraisal, right along with contractor quotes to help bring down the appraisal price, but that  still will place the property as being sold for $40,000 under market value by the IRS's view.

Then after you hopefully do that, go find a good local PM company since your self screening methods seem bad.

Jessica, I recently had a very bad experience due to not screening an inherited tenant who was actually fairly ok for two whole years.

This is a 30,000 foot view :)

Carefully Screen Tenants7. 

So it's difficult to take you seriously as you have a somewhat Utopian world view currently.What I can tell you is what I did.

I would caution you on anything Morris.. they are far from reputable from what we have seen on BP just look at some of the threads on what they did to investors in Indy.. is sad  and left many many folks in very bad financial shape and then to top it off took no responsibility at all and try to blame others.. not to mention their idea of investing in low values assets is completely the opposite of how those assets work.. they are just not credible at any level in my mind and personal opinion.. and maybe I am not either but that's my view point

It would be best to post of the pros and cons, as that would give me better view of things. 

Asking Price: $95,000, I am looking to put 3.5% down (prequalified because I will be living in one side) Listed both sides being 3 Bed 1.5 Bath, after viewing the property 1 side has 3 bed 1.5 bath and other side has 3 bed 2 bath (So that is one of my benefits).

In any situation, you can't discriminate against anyone, but in a non-section 8 situation, if you get multiple applications, you can screen for the best credit, longest lease, etc and that just puts the landlord more in control, and with more flexibility.