The biggest problem for me is local knowledge, there are big variations in price within the same neighborhoods. 

First, I promote passive income to my investors, and this is truly passive, not semi-passive or any other variation of that term.  2nd, as Jon pointed out, once you establish an assisted living operation in your property, its an ongong business with its own regulations and requirements.  

In searching out panelized construction, I can see that as with most things, there is a wide variation of standards. 

Typically you will see a wide variation ranging from 5% to 10% of collected rent.

We moved to the Deming area, looking to deal in the Bellingham area, and areas north and south of Bellingham.The team member I feel I need are the builder to partner with or a variation of.

FHA, Fannie/Freddie, and VHA are all variations on the same theme.

You might also look at selling it to a buyer who has good income and some up front cash but poor credit using owner financing (some variation of a wrap around mortgage).With a little education on best practices, it is easy to manage a few properties on your own while working your regular job.

The AVM does not take the condition of a specific property into account, nor does it consider any specific variations in tenant / landlord responsibilities that may be delineated in a lease.   

In the Midwest we have seasonal variation in temperature that was apparently causing some movement. 

There are all sorts of variations on this process, but I'll ignore those for the moment.So, say the second mortgage holder forecloses, with the list of encumberances above.