Your wanting to do high-risk via extreme leverage....via high risk OOS investing, committed to never being boots-on....... via high risk class c....... doing reno's to make habitable which is high risk at a level we should just call it EPIC risk..... 

--> Passive income doesnt mean tax free income.

This is not a great return, but not terrible.As others noted, there are other risks, like having the property insured at full replacement or purchase price, or if the option is 100% seller financing with no money down or very little, versus 20% traditional down payment, this can start to move it into a better investment.

If you have questions about any of this stuff feel free to ask or PM me and I'll be happy to help I won't be doing it to try and win some business, I am just happy to help if I can. 

The background check is supposed to identify the amount of risk, then you determine whether you can mitigate that risk or not.

On the MGA side their in-house product is assigned to a different writing company depending on the state and risk. 

So there is increased risk. 

Bigger deals can be a good angle to attack AND that being said there is a greater deal of risk involved. 

To your point, there is some risk associated with buying a note, but that is why we are selling them at least 25% under market BPO value.

This owner found a free lease template online that provided very little landlord protections.