That it is unethical, and I should stay away from these type of deals.

It means you need to file/pay state quarterly taxes (B&O Taxes) on that Income and report a Schedule C business now that you pay SE tax on vs. no SE tax if that income would have stayed on Sch E as rental income. 

I wanted to stay local initially so I can both learn, manage myself, as well as having a great knowledge of the area.

I would stay away from 27th-43rd west and from 1200 (walnut) to 4000 N (Capitol).

If I stay under 5,000 square feet I don’t need a storm water management plan, which may be what I do to get started, however this is much smaller than the 52,000 square feet I was planning to start with.

I know Eagle rock is the place to be, but also the other one also pays for itself.Eagle rock has a long way to cover its own expenses as the other 2 tenants pay so low rents and does not seem like they will be going anywhere any time soon, so I am not sure if I invest in the Eagle Rock property and carry a large negative for at least next 10 years or go with the Bread and Butter property and stay in a not so good neighborhood.What do you guys think, a better neighborhood or an easier investment in a not so good area?

@Shanae Williams have a game plan for your rehab timeline and exit strategy and follow it strictly.A lot of people buy their first house as an "eventual investment property," get comfortable, end up staying there for years and never make it a rental property like they initially intended.Great idea if executed properly.

Depending on which unit brings in less rent - where you are staying currently vs the 4plex - I would move in to the lesser of the two as a house hack.

Let the tenants know you want them to stay, because as a business owner, you should want them to stay, regardless of what you think of them personally.

I've been investing in the Southside of Hampton roads for 8 yrs now and specifically stay focused on Va Beach, Chesapeake, Portsmouth and Norfolk.