They do not want to reveal the money trail (true source of funds).

I also want to say that if you see this as a true passive investment, you'll be in for a surprise because it's anything but....usually.

What David said is true. 

Quote from @Chris Seveney: I wonder what the OP's true motivation is for asking this question. 

As a rental strategy for non owner occupants, it absolutely is a fantastic way to generate the highest return, that's true.....but also, and most importantly, your screening has to be on point, and without that, it won't be as effective because one bad roommate can ruin the environment for the other roommate tenants. 

Based on what you have explained here and assuming that all of it is true, than you really only have two options to get it rented1.

Investors like me are left sifting through overpriced junk instead of finding real opportunities.This has always been true.

That’s not true.

The Kwikset Smartkey system is an accident waiting to happen, the stories of them jamming up when you try to reset them are true, it happened to me.

Now investors, especially the newbies, are chasing returns by going after higher risk investments - many NOT really understanding the true risks.Many more investors will be losing money and choosing to liquidate real estate - which will be buying opportunities for the better prepared investors.