They have more skin in the game then you do.Make sure you get clear title.

I see you're looking at buy and hold for long-term passive income - but there are few different ways to skin that cat.

It will be extremely unlikely that you find a HML to give you 100% funding on your first deal.They will all require you to have a down payment and some skin in the game.You will also need funds for rehab because they typically reimburse you afterwards.You'll either need to save up or get private money (friends, family, etc) for the down payment.Otherwise you can always explore creative financing options like seller financed deals, etc.

I guess I'm just now beginning to scratch the surface.

Every surface and everywhere.

The 1% rule is just a spitball way to look at a deal on the surface very quickly.

Hi @David Miller, it appears that would be the route to get some "skin in the game".

I would ask the lender, but probably not most lenders want you to have skin in the game, even the seller takes on a lot of risk if you don't pay, because they would not be first loan position. 

They have more skin in the game then you do.Make sure you get clear title.

There's a mentality problem here that may seem minor on the surface but this is a big red flag in my opinion.