We called our lawyer about it and he has informed us to take the rent from the roommate and establish a month-to-month lease recorded orally only. 

This will establish trust and allow you to become a stronger Wholesaler/Investor.

Much of what he has written is factual or makes logical sense, while most others shared what works for them, without considering the big picture.So, let's try to sum up your options:1) DIY Tenant PlacementPROS: Save moneyExperts know legal & regulation issuesYou have final decision, but can't blame anyone but yourselfCONS:Your lack of tenant screening knowledgeCostLack of legal & regulation knowledge2) Hire a Real Estate AgentPROS:Local expertsYou can still DIY manageCONS:They often lack detailed screening knowledgeThey may not know all PM regulationsCost3) Hire a PMPROS:Should have thorough tenant screening process better than all aboveShould know all legal & regulatory issuesShould give limited tenant-performance guaranteeCONS:CostYou usually don't have inputCan you trust them?

This will help you establish some credit for the business fairly quickly.  

The entire state is run by a one party tax, spend, and regulate government which results in a terrible business climate.

I am looking to put the least money down and will be using this property as a personal residence for at least a year and then either selling as a flip or establishing a long term rental as it is near a private university. 

I had an S Corp for my IT business, an LLC for my Auto Repair business, and a C Corp set up for my real estate management.While in my mind I need a real estate management business, when I did the papers to establish the management company, one question on the application is what type of business is the entity engaged in, and it clearly states if the company is engaged in anything requiring a license, I must submit a copy of the license, and I do not have a broker's license that entitled me to engage in property management.

In the past, one of the primary ways private companies raised funds for real estate investing was through Rule 506 of Regulation D.

You want to establish a team. 

State/County Parameters - Pro Investors State laws, positive immigration & growth, county regulations, POS and Property Taxes, etc.3.