Don't do anything that might show up on your credit, even if it is only inquiries.

If there's a way to collect the fee and run Credit check / Background check, that would be a great tool for an investor who is not full time yet (such as myself).

Key point, don't buy properties with major negatives like no garage, on busy streets, that back up to railroad tracks, in airport flight paths, etc.

My Credit union is willing to loan me 10,000 @ 1.9 %.

I would say the fund would be more about your track record.

Over the last 5 years we (@Sam Wilson and I) have developed a pretty cool and detailed system for tracking preforeclosures in Tennessee - primarily in Memphis and surrounding counties (but could easily be expanded to any other county or city).  

@Sam it sounds like you are on the right track and getting some great advice here.

You are on the right track by having trusted reps on the ground locally and the necessary rental operating infrastructure already in place.

Should we have a joint bank account separate from our own strictly for the REI business to keep track of funds and cash flow recycling and etc?

Ideally I'd like to find a LINE of credit of some sort.