The turn cost almost $4,000, not to mention court fees, attorney fees, and lost rent. 

If you can put 20% down, why are you mentioning FHA?

As mentioned, I would definitely seek out the advice of experts in those specific markets depending on where you decide to go. 

These people waited years to get their voucher.

As mentioned, they often come with limited returns and still require management.I’m curious—when you say active investing doesn’t appeal to you, is it because of time constraints or concerns about risk?

There seems to be a waiting list in the area as well so I believe the demand is there.

They mentioned he is single and quiet which is ideal for a landlord haha.

Depends on the state but it ranges from $800-1500+ and, as Chris mentioned, we have the borrower pay for out of the gross proceeds of the loan.

Not to mention there is others out there with GIANT budgets, massive systems, proprietary software to effect big efficiencies, and they can't operate at that insanely low level, there is a reason for that. 

+1 to what was mentioned above.