They have more skin in the game then you do.Make sure you get clear title.

I see you're looking at buy and hold for long-term passive income - but there are few different ways to skin that cat.

It will be extremely unlikely that you find a HML to give you 100% funding on your first deal.They will all require you to have a down payment and some skin in the game.You will also need funds for rehab because they typically reimburse you afterwards.You'll either need to save up or get private money (friends, family, etc) for the down payment.Otherwise you can always explore creative financing options like seller financed deals, etc.

No matter how much rehab a property has had nobody will pay Class A rents in a Class C neighborhood.Plus, the nature and scope of the project could mean anything from light value-add on 20 units to deep value-add on 300+ units.

Design Development  Construction DocumentsThe design requirements will include but not limited to:   Installation of new plumbing and electrical systems with separate electric metering for each unit  New gas top –vent gravity natural gas wall furnace and air conditioning system.

The problem with Phoenix is that there are virtually no natural boundaries for growth, so it can be very volatile particularly on the outskirts.   

My ideal living space Close to nature.

Hi @David Miller, it appears that would be the route to get some "skin in the game".

Couple reasons:1) More limited financing options.2) More limited use and structure for the deals.3) Finally, if you have to inject extra cash into the property for whatever reason (manage an economic downturn or natural disaster, for instance), it's going to be trickier using an SDIRA.Syndications and private lending protect you from much of the property management nuance.

I would ask the lender, but probably not most lenders want you to have skin in the game, even the seller takes on a lot of risk if you don't pay, because they would not be first loan position.