I worked for those markets as a lender and owner for 20 years and know it by street.I have contacts there if you want to send me a PM I will make a few referrals. if the houses are trashed your not going to get a lot for them if they are rented and stable might get close to the zillow values you posted. 

I want to build a portfolio of multi-family homes to start.

Quote from @Shameka Henson: Hey Ya'll,I am nearing the completion of my first BRRRR project, which features 6 beds and 3.5 bathrooms, and I intend to rent it out by the room.

People that have this trend tend to not get back on track and will continue the move towards later rent or just doing this till they cannot afford it (not pay, or move out abruptly).

DR Horton is trying to build over 300 homes but locals are against it but STR would not be allowed. 

I'm buying a house from a client that I have a rent to own option. 

He used to own his own his own contracting business for 6 yrs, and is now the on site manager of a construction company that builds APT buildings and subdivisions.  

From a tax perspective, the IRS typically allows pre-rental work (like the hours you spent getting the property ready) to count toward material participation if it’s directly related to getting the property ready for rent.

I've never done that, but if I ever did, I'd offer the LAST month's rent, not the first one.  

However, I suggested we lease-to-own our current home or potentially even rent it out if we could get tenants and the right rent where we wouldn't just be bleeding cash flow.