Getting answers to those questions will determine the amount of capital reserves you'll need to bring in addition to the down payment, but I'd guess at a minimum you'll need $15k, which drop your returns to the single digits until you can increase rents.I'm not 100% sure of the legality of the county's laws regarding sun setting lots, but you could reach out to the state's manufactured housing association and potentially get the two lots back if you agree to infill them with new units. 

Small home repairs and late night phone calls are a minute part of land-lording, there are also a lot of legal aspects involved. - City rental certifications can be required- There is certain paperwork that you need to give someone at the time of signing a lease with them (lead based paint       disclosure and pamphlet, inventory checklist, etc...)- If someone stops paying rent you may need to go through an eviction process- When screening tenants you need to do a thorough check of who you're renting to- There are several Fair Housing laws you need to be aware of when placing a tenantOften times, a PM company will even be able to cover their own cost by receiving the highest rental amount possible for your investment, most likely higher than you could by yourself due to the exposure and avenues they have for marketing.

IF NOT PAID back in that time you would have to go through the legal process of claiming the propertyMY Question, what have you seen as the average winning % for these liens?

This way, if the roommate wasn't really meshing well in the house--but didn't do anything that you could legally evict for--I could simply give a 30-day notice to vacate.

I'm setting up two LLCs with one for the flips and one for the rental properties.The flips will be an S-Corp exactly as you said to try and make room for some of that income to be taxed at a lower level.Having the separate LLCs is necessary not only for legal protection, but to keep the accounting separate.

@Ryan Canfield to get another FHA loan for increase in family size, you have to provide evidence of increase of legal dependents, and the LTV on your current primary that you are vacating must be 75% or less.

To legally protect yourself you need to stay the course on the eviction.

No legal advice given

If it is 15% down they could get a lot of money from you upfront and then get full recourse against you selling at an inflated price.One scenario non-recourse you learn on the property and then hand it back with minimal losses if it turns out to be a real dog.The other situation is they have full recourse against you on the loan, they sell you an inflated price, you put a bunch of money down 15%, and now they won't let you out of the dog of a property and every waking day you are dealing with problems.Owner financing can be great if set up properly.No legal advice given. 

Before I even go look at a building I am on this website to check out the building and its history of permits or violations etc.