Also, I always write letters to all of the neighbors introducing myself, and thanking them in advance for their patience while we rehab the building; making sure I emphasize how big the project is, and the high quality tenants that my property management company will be placing once the project is done.

One key to emphasize here is that while this is totally passive investment you have to do your due diligence upfront: one bad loan and you can lose your money.I don't think your 3rd option would be wise move.

If you do be completely open and honest with the applicant and emphasize that you care about their well being and peaceful occupancy.

Everyone emphasizes the importance of a plan and now I can see why!

Start networking....yesterday: I can't emphasize enough how helpful it's been for me to get from behind the computer screen.

As a Landlord and real estate investor myself I must emphasize that if the numbers don't work the numbers don't work. 

They do this to emphasize housing opportunities for veterans, instead of cash flow opportunities overall.Not sure if they've loosened the restrictions over the last few years.

 The media keeps emphasizing the Vegas shooter's career as a real estate investor.

Scaffolding on top of & updating what I mentioned above (and re-emphasized elegantly by @Charles Kao):If it's one of your first ever real-estate deals, and, it's a long-distance remote deal, and, you're not even at the closing-table,  the patsy is most definitely, most certainly,    YOU.

Here's how I, let me just emphasize the I, would say to get started.