My only other option is Hard Money and that requires at least 20% skin in the game...which I don't have!

The challenge is "the skin in the game" at 25% to 30% down.

I think inspections actually keep a healthy relationship showing your concern for keeping the property in good condition and hopefully the tenants would have incentive to maintain the property in good condition as well, knowing how much you care and the periodic vigilance.  

I require 2 month’s deposit (this gives them more skin in the game).

Just paying buyer's agent commission.Upside to the buyer is a great SFR portfolio that generates a healthy NOI. 

Their “invested $” is actually a positive sign for you in that they are putting some skin in the game. 

It's difficult to grow in the beginning without leverage unless you have a very healthy pool of money already or a strong W2. 

Yes you might look at secondary cities near Raleigh as valuations will be better.Cone Health is in Greensboro, not Greenville - about an hour from Raleigh but on the other side.

They do not get paid when the property is vacant, however they manage quite a few properties so I'm guessing one rental vacant for a longer time due to this is no skin off their backs.

Even if their balloon hit during an economic downturn, they have both a healthy LTV at origination and an even healthier LTV after raising the NOI by almost $100,000 per year.