We will have an expense account and capex account. 

We have a lender saying we cant use cash as a down payment for a house, and that we would have to distribute the money to family/friends bank accounts then get them to wire the funds to the the lender.

I was wondering how you have filled your W9 if you have a single member LLC (which is considered a disregarded entity) and ensure payments go to your LLC and not your personal name? 

Someone I know owns section 8 properties, he doesn’t have any issues and the rent gets deposited directly to his account.

Is it better to invest in one 3-4 unit multi family first or 2-3 cheaper single family homes? 

I have done my research online and it doesn't seem like the strongest market (population is stagnant, crime rate is not the best, job industry isn't very strong) but I know personal accounts are important as well. 

It's wise to take into account market research and any upgrades or additional benefits for the tenant.Determining when to raise the rent is influenced by various factors such as lease renewal dates, local market conditions, tenant satisfaction, and lease agreements.

to determine NOI on a brand-new rehabbed single-family property that should not have any operating expenses. 

If you're going with direct mailings, you'll need to shell out for single page flat mailers. 

That all sounds fine and dandy but from my experience with purchasing my first home, the bank wanted to a paper trail of where every single cent came from-- I did FHA 3.5%.