I think funding someone else who is experienced when starting would be a great way to reduce your risk.

Since it will evaluate photos, bonus points if it could look at the MLS and recommend the best finishes and paint colors to maximize the ARV.

Hard to really know what would work best and what people have used.

In this instance what I would do is get the deed in lieu from the borrower so you ahve the property again and get a note from them but have an attorney draft it to see if you can include a confession of judgment - meaning if they do not pay then you can get a quick judgment and possibly garnish wages.I would also have them put a small down payment as part of the note and only accept a check that way if you ever did garnish you have a copy of a check so you know where they bank.unfortunately you are right they can stop paying on the note and its unsecured so its a risk but out of all the options this is your best option.

Hire an accountant—but maybe not for $6,000/yearA real estate tax pro can help you save money, but $6K a year is way too much unless you own multiple properties.

Hopefully you are one of the good operators who does things the right way.

Passive Activity Losses: Are there ways to offset my W-2 income with rental losses, or do I need to qualify as a real estate professional for that to work?

.- Robert Kiyosaki, Grant Cardone, and similar thinkers believe its best to invest in markets with higher cashflow while renting where you want to live.

Hi Melinda, I know this is way late, but what kind of lease agreement did you use to for the care facilities? 

Looking for best options.