For it to work for both parties you will have to do a little more hand holding and one on  one involvement than you would for a normal rental.  

@Devin JamesNothing in life is typically handed to you and nothing is typically get rich quickThe most successful people I know show up everyday and grind it out- they don’t let a failure destroy them - they get up and keep going.If you also read all the great business books etc they all say the same thing - be humble, be consistent and have a plan.

If you have the time and want to take a more hands-on approach, I’d recommend looking into the BRRRR strategy or flipping properties.

Leverage your way to wealth by using OPM vs having only a handful of paid off houses that could take you a decade or two to pay off.

Like most advice surrounding passive investing, this advice may apply in certain cases but the answer really lies in due diligence on the sponsor rather than a broad-brush rule.As a longtime syndicate sponsor I've been funded by both HNW equity and institutional LPs, so I've seen both sides of this first hand. 

Either you do all the work yourself, i.e. no contractors, no managers and no cleaners - or you do 100 hours of hands-on work and none of these other people do more hours than you.

I just put them up on the AMHA search myself and put my PM as contact but I tend to be hands on.

It can be extremely stressful especially while your down payment is held in escrow and you're only receiving 2nd hand updates.Do you know under which circumstances you'd be able to back out of the deal and retain your deposit?

Unforuntately I've been in this position in the past and it's better to keep the partnership in a good space than to force your hand on an issue like this.

On the other hand if they are a sponsor that is experienced in stopping a skin in the game, that's a huge red flag for me.c) how open to scrutiny are they?