Ask them to provide names and phone numbers of their CPA, Attorney, Doctor, Dentist, financial planner, neighbors, etc.

This^^^I've seen plumbers, teachers, firefighters and dentists do CRE transactions.

The passive partner is a dentist, and we were able to purchase this under his name with the Physician's Loan, which is a loan offered by a few banks.

An example I had was on a commercial dentist practice building which was referred to me I was able to get a doctor as a private investor who consider if the risky client did not pay he would foreclose and open a second practice at said location.

Its nothing special it has an old 87' 3/2 trailer and a cement block 3/1 house both houses share utilities.

I can think of ways to inflict $50,000 worth of damage with a crow bar and a bag of cement.   

I can't think of any service businesses (electricians, plumbers, dentists) whose software cost increases with their revenue growth.

You can if you are a physician (or a dentist).

Lets call that the :( side.2) And there is the happy side... passive income (syndications, passive partnerships ie medical/dentist offices) and passive losses (depreciation, bonus depreciation via cost segregations common in syndications).

Sometimes waterproofing is not needed and simple grading or cement work around the foundations can alleviate this problem for a lot less than 19000.