Is there a way to avoid a due on sale clause for my current property and duplex but still operate them as rentals and be taxed as a business?

I admit there are bad turnkey operations out there, but a good product that cash flows and isn't in negative equity sounds like the goal of most investors.

As long as landlords continue to operate out of fear we will never have answers.Document every thing, all conversations, and, as Greg suggests, be prepared for them to play the "emotion" card.

Residual Cash, Dividend Income, Interest Income, Net Income, Net Operating Income, etc.

You will need a LLC, EIN Number, Operating Agreement, etc. 

I think his 12% may be referencing his multi-family that he owns and operates, unless he's not able to pull out all his funding.

However, I don't understand how buildings are financed when the net operating income will not support the mortgage payment.

You can make a lot of money on Contracts For Deed, but I generally find the whole process to be ethically / morally questionable for me.I realize there are different Sellers and all situations are different, but a lot of what I see are Sellers who take a large down payment from someone who they know has virtually no chance of ever paying off the property.They wind taking the property back the first time someone misses a payment and then they start the process all over again.

My current model, as an owner-operator, accounts for my time - here's how:  Each new tenant signs a list of repair estimates they will be charged for various turnover expenses as well as labor at $25/hr for anything not listed. 

Provides Operating Agreement.