Even stuff that needs a large renovation is being bid up by multiple investors.South West Minneapolis is very expensive, particularly the area stretching from Lowry Hill to Uptown to the 50th and France corner.  

Look in the "Find Members" section under the "Community" tab to find other investors in your area.  

A great resource is the webinars section of the website. https://www.biggerpockets.com/proreplay

This is probably a better question in the tax section, but if you meet the definitions of running a business, other than limits on claimable losses I don't see anything wrong with your strategy. 

A great resource is the webinars section of the website. https://www.biggerpockets.com/proreplay

Do not cut any corners to make something look better on paper but not in reality.  

There are a few spreadsheets in the Bigger Pockets file section that can be used to analyze your properties cashflow.

Go online and become a member it will be the best about 200 bucks you spend.You can get a handbook from them on landlord tenant laws but this is also available online,, just google MN state landlord tenant laws.So first is to organize your leases, If as you said some tenants are on Section 8 or other state programs get the contact person for their case. 

I make an exception for income verification if its section 8, but still will not take someone with evictions or bankruptcy.

There's 3 sections to the book but I only reread two of them as I find they are the most relevant sections for my benefit.