I'm in discussions in setting up a potential partnership with an investment group where we'll pay a 8% pref to the investors, but that would be the max risk I would be willing to take.  

Yes I would set up a PM company to keep everything neat and will help as you continue to grow.

In addition set up a rehab escrow  to  fund the project.

Even if you set all the cash-flow aside, it would take a year just to build up a $2,000 reserve which isn't enough to replace the carpet in one unit and that doesn't cover cleaning, other repairs, vacancy, etc.I don't know enough to make the decision for you but the margins seem really thin based on what you've shared.

A few recommendations:- "E-Myth Revisited" by Michael Gerber (this will have you working on your business instead of in your business)- "Rich Dad, Poor Dad" by Robert Kiyosaki and Sharon Lechter (this provides a more foundational perspective on money)- "Cashflow Quadrant" by Robert Kiyosaki (further builds on the "Rich Dad, Poor Dad" foundation)- "Set for Life" by Scott Trench- "Long-Distance Real Estate Investing" by David Greene- "The Book on Managing Rental Properties' by Brandon Turner and Heather Turner- "The Miracle Morning" by Hal Elrod-"HOLD" by Gary Keller (geared toward SFR)-"The ABCs of Real Estate Investing" by Ken McElroy (geared toward commercial investing)"Multi-Family Millions" by David Lyndahl (This is on my list of "To-Reads".

The list is set in stone on day 46.  

My backyard has been used for a family members wedding in the past, but I'm not sure about the liability of having someone I don't know that well use my back yard for their wedding.They could have a huge wedding tent set up, have the mobile bathrooms parked, and have all the caterers operating in my backyard.Has anyone tried this or have any advice as to if this is practical?

(5) Tenant agrees to vacate the unit more than 7 days prior to the new lease Commencement date and further agrees to move out as per all conditions set forth in this lease

With parking and set backs and the size you mentioned I would be surprised if you could get a 4-plex on it.

Like others have said make sure the numbers nake sense but also be creative about how you can set up a deal so you can get the deal.