However, those houses are surrounded by people earning an average income of $22,000 a year.Location, location, location.

With a house hack, you are actually owning an asset that other people might want. 

@Dakota Mivshek From my recollection I think mostly I was dealing with the secretary of the company or some assistant and these people are all unlicensed, unprofessional, basically don't have any concept of how to structure contracts or even withdraw from a contract unfortunately.  

Mostly just people looking for handouts so they don't have to work.

Now I see people accept the $1000 and turn around and "rent the garage" for $200 per month or "rent the appliances" which is legal so long as the garage are appliances are not included amenities on the HAP contract. 

People think they can use the internet to skip this step. 

After finding properties that look distressed does people write offers before seeing the inside of the property?

Many people go there in (large) groups, which most short-term rentals can't accommodate.

In both three people end up contributing all of the equity and one manages the project.

Good morning, @Edna WhiteIt looks like you have already found a potential deal and identified a potential tactic (subject to) to make the deal work, well done so far!