I would say that the value he brings is finding the deals, doing an initial diligence, having a local team set up for renovations/repairs/property management as well as knowledge of the neighborhood.

I'm sure some local banks will do higher especially with a strong relationship but don't think I will fall into that category.

What worked for me was listing on multiple platforms - Facebook Marketplace, Craigslist, and even local community bulletin boards.

I'm with @Huong Luu but would add join a local REIA and find some PMLs they are always hanging out at meetings.

Avoid PMI and then go to a local credit union and get a heloc after closing to gift the money back.Have this as a tool in your tool belt but pursue use of the 3.5% FHA, knowing that you will be at a competitive disadvantage if you are competing with non FHA buyers, then you can call in the favor from your gift person.Just know that if someone gifts you down payment money, your bank will require them to sign a letter stating that it is in fact a gift that doesn’t need to be paid back.

its genius really.. most bird dogs work for locals on a performance basis and don't have to pay the investor to bring them deals.. 

Finally, double-check local demand and rent trends in the area to ensure the pro forma income is achievable.I’ve worked on several mobile home park deals as a broker and am currently helping a few clients sell their parks, so I know how important it is to ensure the numbers make sense both now and in the long term.

From tax stand point I would think you can separate from primary and be okay with IRS being that IRS will not be local code enforcement.  

Going over maps of known repairs with contractors showed that there were a few houses where people tried to have piers installed and ran out of money before hitting stable soil, others in the hyper local area did have to go to 100+ ft.  

I'd check local zoning ordinances to see what is permitted.