He has land through owner finance deal on land, credit is fair, and his income is about $42,000yr.

All units are one bedroom which according to HUD Fair Market Rent is 528.00.  

A friend of mine recently took over treasurer on a club and after seeing some funny numbers, fairly easily found thousands in funds missing that the last treasurer "borrowed."  

I know this is a fairly new concept, but I'm hoping someone has had some experience with this.

We are at a point with our property management business that we need to bring on a leasing agent to help show units, dialogue with prospective tenants, as well as be generally familiar at providing business support at...

What would be a fair cut for me?

Definitely a fair point, its not an island by any means.

They're not home runs for sure, but will hopefully be fairly safe investments over the long term.There have been some bumps and bruises along the way, being a newbie, and having the properties over two hours away from my house.

Current Fair Market Value is approximately $72,000.  

So if his fair market rent is $2,000 we would consider  income  at either $4,000 or $4,200 so that's close to the 1% test.  1% would be an income of $5,000 a month.