The rent on the property is currently covering the PITI.

This is the sum of all the personal property (Car and real estate) in the town.  

We currently have one rental property and looking at building a primary home.

Has anyone had experience buying property portfolios?

It seems like we could get a down payment for a new, cheaper property and some passive income while also saving the buyer money. 

Im considering buying a turnkey property from Mid-South Home Buyers.

I just calculated that the ROEs for my 3 rental properties are 6%, 5% and 1.5%.

The bigger concern would be your ability to refinance and make sure the property appraises for a value that allows you to refinance. that would be the risk, and if you cannot refinance, the balloon expires, the lender could foreclose on the property  

If someone owns 3 properties and uses their license to help a few small investors, that's right up your alley.

I don't reward thieves by handing them more money, but that may be the right answer for you since you aren't sure how to move forward.In the future, you should consider hiring a professional property manager.