Even with a lease in place is there an option to terminate contracts with a sufficient amount of notice?

.); the sufficiency of estimated insurance proceeds from ordinance or law insurance and other coverages to repay the Mortgage Loan in the event of partial or full casualty, or condemnation; and for a Tier 3 or Tier 4 Mortgage Loan, if requiring execution of the Limited Payment Guaranty (Form 6020.LPG) would mitigate the risk of the as-rebuilt Property not supporting a Tier 2 Mortgage Loan.

While they are indeed somewhat arbitrary, they provide a straightforward framework to filter out properties that are unlikely to meet my investment criteria.1% Rule: This rule helps ensure that the property generates sufficient rental income relative to its purchase price.

This alone MAY be sufficient for you partner to believe that you will NOT “do nothing” and he may at this point reach out to you.2.

My CPA says it is sufficient for tax purposes to have records of invoices from the PM to me. 

If there is so much money invested in DST's, can one reliably say that sufficient number of investors are profiting?

The way to avoid this is to have sufficient reserves.  

If you can pay less than rent, and if you have sufficient reserves, that's the way to go. 

Lastly a Heloc will "Never" act as an asset or PITI reserve so if you fail to have sufficient funds required in reserves (Cash) then your will not buy multiple investment rentals.

2) PS specific home - We looked at a few and were intrigued by one that is a 3/2 (plus self sufficient ADU, former garage) with a nice pool, yard but 2/2 on city records.