The flood insurance factor was definitely a key consideration for me.

They would not be upside down.The key is finding VERY discounted houses.

There's obviously quite a bit of diligence that comes after such as who the key principles are and their credentials/track record (both balance sheet and experience), the underlying real estate and thesis behind the investment & tax prep and audit procedures but as a general rule of thumb if the investor can't get past the first part which is understanding what they are investing in, passive investing is probably not for that individual. 

Look for investors who have capital but lack time or experience—networking on BiggerPockets, LinkedIn, REIAs, and local investor events is key.

Buy and holds is the key to true wealth with all the benefits of depreciation, appreciation, loan pay down by your tenants, leveraging the equity, cash-flow etc etc, but it often times isn't the active income that pays the bills until you build up a portfolio and even then there's the tenant management or managing your property managers.That's why I'm involved in all 3.

Don't forget 5) principle paydown and 6) leveraged returns, among others.Owning real assets in this inflationary environment is key to growing wealth, and real estate is the best asset available (in my biased opinion) :) . 

Seriously—Pick a Property TypeDetached houses might be the easiest to work with, but the real key is committing to a property type.

And, the dividend yields are a key, if not the most important, factor for driving CAGR alpha.

Hey Matt,I’ve been investing and managing properties for over 20 years, and choosing the right market is key—especially as a new investor.

We have 2 San Antonio sub2 deals that are turn key homes and only require about $20-25k to close (assignment fee + closing costs).They're a great option!