Readers should seek professional advice.

Turns out the Landlord entity, operating property, doing leases, doing all the activities, is themself leasing the properties on an enhanced NNN basis from a separate entity. 

The problem is NOT the use of remote entity as any fraudulent  activity will fall back on the individual performing fraudulent acts.  

(Or a lot if you're dealing with a scam turnkey company, of which, unfortunately, there are a decent number.)BRRRR is much more active, you buy a fixer as you note, oversee the rehab yourself and then either manage yourself or find a manager for. 

Investors are always seeking reliable PM assistance.

If passive investing appeals to you, real estate syndications or REITs diversify exposure without active management.Best regards, Stevan

If this was overlooked, consider seeking a second opinion to ensure no missed opportunities.This post does not create a CPA-Client relationship.

Readers should seek professional advice.

NOTE:  there may be some tax on interest or principal on the payments--seek professional advice.Also, stress there will be no inspections or other contingencies--sell the 'peace of mind' side of the equation.You have known each other for 12 years and you established you are a great payer. 

SFD vs condo vs 2-4 unit, hold vs flip, turnkey vs rehab, passive vs active...it really comes down to each individual property/opportunity, what your goals with the property are, and if the numbers make sense or not.Best of luck!