Questions about strategy: buying notes vs. buy and hold

[Mark K.]

As I've been doing my education over the last three months, I was was dead set on the buy and hold strategy.  I still think it's a great strategy but I have a significant hurdle in that I want to invest remotely.  Yes, I know it's been done plenty of times but as a newbie, I don't know if I'm willing to take that risk.  

I like buy and hold b/c of the cash flow potential and tax advantages with interest and depreciation write-offs.  However, I got very discouraged when I realized I would probably need around a dozen (give or take) properties to cash flow at "just" $3K a month.  

Anyways, I've recently been reading up on note buying but am not finding the info I'm seeking.  It's still somewhat difficult to wrap my head around what note buying is and what it entails.  

A few questions below...

• Does note buying has the same cash flow potential and tax advantages?
• What happens when the note is paid? How do I make money off the note then?
• How would you compare cash flow vs. getting paid a high return on a note every month?  I'm still trying to wrap my head around this.
• How would you compare finding deals? Discounted private note vs. discounted SFH?

Any other info you could provide would be great!