You have to be up front about how the property is being used.Also, remember that umbrella insurance will not do anything for you if the underlying property or vehicle is not insured correctly.  

At that time, my friend encouraged me to get into real estate with the idea of creating passive income and wealth in future (via appreciation).

Sometimes, buying an existing property can be more cost-effective and less time-consuming and maybe require slightly less permits, etc. 

First time investor, looking for cash flow.2.

I am so embarressed I am sorry, this is my first time.

Quote from @Landon Sheveland: Hello,My wife and I, are attempting to purchase our first property.

OK now imagine you did it 10 times in a row and all 10 times it landed on "heads".

An investor who has participated in a subject to transaction without lender approval should NOT assume that they are safe from note being accelerated because a certain amount of time has passed.  

This is the first time I've heard of a city or municipality doing something like this. 

So far the biggest challenges for out of state investments has been finding reliable contractors or help to complete projects on time and under budget.