But additionally, since you need someone to share their net worth and liquidity to qualify for your loan, they are taking on some decent risk to not be truly involved with the opportunity for upside.At the end of the day, if you are assuming $1mm down, $3mm loan, whether it is agency loan or debt fund or local credit union, they will want experience (and this could be the professional property management company you hire).  

They may only charge a few hundred or few thousand depending on how involved it is whereas you could save multiple orders of magnitude of what they charge in savings/deferrals.

You may also find certain markets where alternative rent strategies (MTR, STR, rent by room, etc) produce enough extra income to justify the increased work involved but the difference in income from the different rent strategies in many markets is just sufficient to justify the increase in effort involved.$100k is going to be challenging in coastal CA cities.  

@Rehaan KhanPlenty of very good real estate attorneys out there and especially good ones who will tell you you all the risk involved - which is why many shy away from many of the “creative” financing deals going on right now which are just unqualified buyers finding ways to buy a home and those attorneys do not want to be part of the lawsuits later on.

In other words a total stranger with no agent involved... 

Man I am not sure why I keep getting involved with this crap.Guys.. have fun ..I need to make some money!

I came from a traditional real estate background and got involved in land flipping years ago.

They are all very engaged and involved so I guess it all boils down to if you want passive invest in T-bills... if you want to earn better- get in the fight.  

But then on the closing side, the attorney side, etc - listing what each potential person who could or should be involved in the transaction and what their role is would probably be helpful for someone getting started.

As for STRs, they need more hands-on involvement and has higher start up costs.