Then they try to collect deposit and rent and move a prospect into the property.

I’m also middle of the map, slightly less capital chasing than you have in NC so maybe part of my optimism.

You are assuming a perfect world for the stock investment, but applying sub optimal assumptions/strategies to the real estate investing.

What’s is the preferred way to collect rent.

You could try to get a judgement against the borrower and attempt to collect any exempt property that person may haveNEVER EVER LEND MONEY ON REAL ESTATE WITH A PROMISSORY NOTE. 

Property tax collections represents about 59% of the City's general fund annual operating budget.

He is collecting in total $4500/mo in rent from that property.

In Dayton, you can challenge the assessments and if you are buying under market and very aggressive (paying an attorney to challenge assessments every year) - you will probably pay about 15% of your rent collection in property taxes.

My favorite way to collect property is to buy as an owner occupant and then move a year later and do it again. 

I've chosen to focus on my clients, grow my management base, and optimize my current portfolio, letting the cash sit for a rainy day, although I obviously won't pass up a great deal if it falls in my lap.