BUT...if you're American and can still get loans in the US (the silver lining of having to still file US income taxes while living abroad), then why not use leverage?   

But residential re is not passive.  

My recommendation would be different if you were a high-income earner or if you wanted steady equity growth.

I am wanting to build passive income How did you finance this deal?

Renting part of the home after conversion provides additional income and deductions.This post does not create a CPA-Client relationship.

Some questions to consider:1) How much negative cashflow can your other income stream(s) support?

We pay all of our expenses out of that which includes: broker split (my brokerage takes 22% of the total commission, this varies by brokerage and is typically anywhere from 5-50% depending on how much support the brokerage provides and whether or not the agent is on a team), transaction fees, transaction coordinator cut, income taxes (15-20% of what's left after broker gets their cut), errors and omissions insurance, MLS fees, board of Realtors dues, required continuing education costs, vehicle and vehicle insurance plus maintenance, repairs and gas, health insurance (also health insurance for the family if they are the sole breadwinner), technology fees, desk fees (office rent), marketing materials, advertising/ lead gen, etc.

Expanding your portfolio, streamlining tenant management, diversifying income streams, building a network, and planning for growth are also recommended.

If they pay late now as is, let's say they lose a job or have a temporary loss of income, you're kind of SOL.I would look to build reserves between now and August.

Due to the university there I worked with a lot of incoming families and getting what they needed for their dorms.