Some hotels actually have a condo like structure, where people can own the units, but perhaps are limited on their personal use to only a certain amount of the year - the rest of the year it is in the rental pool managed by the hotel.If numerous room owners stopped paying their bills, you could get tax liens on numerous separately owned units.Hotels are a tough business, an issue I also see come up with them often is that they require refreshes, expensive and relatively often - at least once every 10 years, if not more often. 

Would the person who takes on more labor to repair the property have greater preferred equity or is this usually treated differently?

The best way to learn about how to really invest in real estate is to read books, listen to good podcasts, and pair that with going to in-person meetups so you can see people just like you, married with 3 kids, who are making it work for them.

Focus on the person (the seller), not the offer.

I've never done one personally but my understanding is it involves the home being put into a trust, with the sub2 purchaser buying the trust from you.

I don't know a single person affected by tornado in Dallas while we have had them and I have seen the destruction.   

Usually my time spent with newbies last a minimum of 1-2 hours on our first meeting (either in person or on the phone).  

I have also utilized owner financing for longer periods of time, including personal residence and 2 barrier island houses on the coast of Florida.  

Unrelated persons ordinances are common. 

The loan does need to be secured by the property being improved if we are talking about a personal residence and personal itemized deductions on Schedule A.