For passive investors we typically include a preferred return 6-8% and IRR hurdles based on investor return. 

for me, that is the biggest hurdle, as I don't look forward to having to save $60k to $120k to invest since the real estate markets there operate largely on a cash basis.

Yes, they would be divided between all of the properties unless it is unreasonable to do so.

Onto the next hurdle...

There are many hurdles to find one that is in good enough condition to qualify for financing and also has an empty unit for you to live in too. 

I am sure they should work with you unless you have unreasonable tenants.

@Kenneth Garrett Your example makes perfect sense, but I thought in order to make a private loan like that there were legal hurdles (isn’t that where the whole credited vs accredited comes from)?

Is this unreasonable, does anyone have any thoughts or advice on this.

I personally think that is the real hurdle that keeps most investors in  Single family homes. 

Gotta ask ya, and I'm not being a smart alec, but if the foundation slipped 2 inches in 47 years it may not be a massive hurdle unless you're seeking to make it perfect (or the cracks look brand new).