What are the challenges of passive investing as opposed to traditional real estate investing? 

True.

Quick question: What’s been your biggest challenge when managing smaller multifamily properties?

I would study the listings from the top performing rentals in your area to see how they are overcoming any challenges with location.

One thing I wish I knew starting out was the true overhead of running a RE business it can be pricey if you don't run your numbers right.

@Holly Thorsen see above for potential challenges tapping your equity in the rental.You only need 5% down for a regular mortgage, 3% down for an FHA mortgage - so why don't you have the funds?

Quote from @Michael Smythe: @Felicia Jenkins the shorter the term of the lease and the more tenants there are, the more challenges you'll face - especially if you plan to manage remotely.Who will be your boots on the ground, do showings, maintenance, etc.?

Rental Market Trends: Is this zip code trending positively for investors looking for cash flow, or should I expect stagnant rents and challenges with appreciation?

Raising equity can be the most challenging aspect of closing a deal.

I was hoping someone might have some experience in this market to know how challenging the process would be to obtain the permit.Thanks for your input!