Also, rents have gone up, but nominally at best.

Many are overseas buyers getting zero percent return in their country or very nominal.

Nominate a manager that is not you for the wholesale company and that can sign on that companies behalf.  

If I were charging an adult child living in my home a nominal rent to cover the increase in costs due to the child's occupancy, then I would argue that I am not a landlord operating for a gain or profit.

No income verification needed, No DTI needed, no min credit score as long as no late mortgage payment.

Conversely, if you have a pre-approval letter, then you start looking for houses, most sellers are going to accept that pre-approval letter and a nominal deposit because "someone" in RE - the bank - has already agreed to buy YOU. 

The return % seems good, but the nominal amount seems low for the potential risk involved.

To me, it is not worth the time and effort to segregate those items given the nominal benefit.Just my take.

performing notes generally are more constant than rentals IE you don't have a vacancy and you have no fix up costs.. so if you have the turn over which each rental will have over time.. your notes are still chugging away.and there are no loads with notes IE no management fees etc etc.. so you diversify.. now downside to notes of course is no leverage.. but also no mortgage or long term contingent liability .. you own the note 100% .... and if your buying in a market with historic non appreciation then notes are equal as they don't appreciate.. you don't get tax write offs but the write offs on a 60 to 80k rental are nominal anyway.lots of my clients over the years as they age roll out of landlording into note collecting its another degree of passive.. and done right pretty cool..

The repairs on the duplex have been nominal and the repairs on the 9 unit have been extensive.