Your points about passive investors, risk and ability to "create" value are right on point.  

I am definitely not confident in owner's abilities to determine proper pricing.

The bigger concern would be your ability to refinance and make sure the property appraises for a value that allows you to refinance. that would be the risk, and if you cannot refinance, the balloon expires, the lender could foreclose on the property  

That mortgage will tie up your credit and your VA entitlement, impacting your ability to purchase other property.

The exception would be a superior website maintained for SEO, IF your investment program is large enough to cover the $5k upfront cost and the $500 per month maintenance for an optimized website. 

Also I shopped very frugal, I would buy a lot of material wholesale or through auctions, and also I had the ability to buy from a former employer, a manufactured housing factory, that was also a huge savings for me.I had to do this deal this way.

If you position yourself on the outer edge of that moving path of progress, there could be opportunities for STR/MTR/LTR all in the same neighborhood, which gives you that desired strong pivot-ability.  

You will pay upfront points for the "risk" the banks take for not digging into the borrower's ability to pay.

It also plays a role in how some of the people here made it big, but you now question their ability.That guy who has his face all over ODC basically has shown that he's got no real ability, he was pure luck.

Your ability to be honest about your investment, and be honest about your positive and negative actions, tells me that you would have a VERY successful career investing in real property.