That case also gave us a multifactor test to determine if a note is a security based on the motivation of buyer/seller, plan of distribution, reasonable expectations of the investing public, and other factors that reduce risk. 

The risks here have the most weight in determining success or failure.

You have to evaluate the situation and determine which one is ultimately aligned with your goals.

Depending on that you'd determine as to whether continue with the current strategy or start fresh. 

As for looking for a PM firm once you determine what market you want to invest in I would look up NARPM and start with them..Below are some questions I would think would be a good starting point for you to see who really treats their company like a business or a hobby.

However, I've never gone the internet route for private financing as to why it concerns me. 

@Mark Ashton Publication 523 - Eligibility Step 4—Look-Back Determine whether you meet the look-back requirement.If you didn't sell another home during the 2-year period before the date of sale (or, if you did sell another home during this period, but didn't take an exclusion of the gain earned from it), you meet the look-back requirement.

A lot has changed over the past few weeks and I am continually becoming more determined and motivated to start investing in rental properties.  

Often times underwriting will use their discretion to determine if the move makes sense. 

I'm still building my plan as I put together my funds and determine my risk tolerance, but I have considered both.