The heirs can choose to hold their shares and receive dividends or sell them.Passive: Allows investors to trade an actively managed real estate asset for a passive investment in an Operating Company that is typically run by an institutional asset management firm.Consistent Income: Operating Partnerships can issue dividends or distributions so that the investor has cash flow.Portfolio Diversification: Enables the investor to achieve diversification across geography, industry, tenant and asset class in an Operating Partnership structure.

And I'm not addressing the typical real estate supply/demand/Investment strategies.

Getting the judgment is typically the easy part - collecting on it is always the problem

Might be tough from area to area, but I typically find that homes built before 1950 that were converted from single to multi family are 9 times out of ten - a full gut rehab and way too expensive for first timers.

They typically search for bargains and find land which is owned by people in financial distress or who need to get cash out of their investments quickly.

A 3 day notice is typically used for non-payment.

The part they typically miss, however, is the "control everything, own nothing" aspect.The purpose of a business entity structure is to protect you and your personal property (estate) from the liabilities of your real estate investing business.

You can typically buy down your rate with points or lower your LTV for a lower interest rate but the LTV doesn't move much unless you have a low FICO or are looking at a 5+ unit/ commercial property, both of which would lower your LTV.Rehab loans will mostly be based off experience.

You are correct, you are not the first to have this issue, but typically it is more of an issue of LO's not understanding how  it should be looked at. they just do not deal with investors often.I would also echo Patrick above, moving your current loans into a DSCR loan would not change anything for your issue so please do not spend money doing that. 

You can typically borrow half of your 401k balance as a loan as long as you are working for that company still.