When I think of passive income in RE my thoughts go to buying the equity, debt or preferred shares of RE companies or investing in someone else’s deal/syndication where all I’m doing is writing a check.

The "average" college debtor hasn't got a prayer without the right connections.Another important point - and this runs counter to what is most often heard: focus on investing for income FIRST.

However, it does not take this occurring more than once or twice before the self-employed debtor will contact you and make arrangements for satisfaction of the debt.A second effective method of collecting from the self-employed debtor is a Writ of Execution or Attachment on the work vehicle and tools of the business or business owner.

To hopefully make extra cash to either pay off my student debt or save for my real estate fund; 2.)

My plan is I want to have about 50% debt or less to have some equity when things come tumbling down and I really feel people in "C" class neighborhoods will need to downsize to my apartment complexes if they start downsizing or if an economic crises occurs.SwannyGuest Podcast 238!!!

That is correct, I've done many of these personally.If you have:- #1 debt or a lien on the property currently you can do a regular rate/term refinance instantly or wait till 6 months to cash out based on fair market value or FMV- #2 if you bought the property cash then you can refinance up to 70% of FMV or your total acquisition cost that you paid for the property whichever is less (often times if you got a good deal your total acquisition is less than 70% of FMV). 

Debt or equity?

Regardless of whether its acquisition debt or in relation to a refinance, costs associated with the loan are added to the loan's cost basis and amortized over the life of the loan.

So is debt or friendly encumbrances, but the latter can be back-tracked if no evidence of real money passing hands for which the debt allegedly secures. 

I agree with @Kyle Mclaughlin - you can set up a debt or equity structure.