You can also message me if this is an option you're seriously considering and I'm happy to chat with you about BiggerPocket's private community for syndication investors called PassivePockets.

Typically, the initial upfront for the rehab is either cash or a high interest loan (hard money or private). 

Buying a MLS listing is probably a no go ,if you find a private sell or a similar way that would be the best way to purchase a property in todays climate.

I've also heard of requirements to own for at least one year before you can use the home as a STR.Hawaii is a leftist state that doesn't protect private property rights.

Quote from @Rodney Davis: They presented themselves as private lenders.

For example searching on keywords in both the description and private remarks that aren't shown to the public. 

For most of their existence Fannie and Freddie were privatized.  

.: Hi All,Is there any way to structure a private lending arrangement so that income is considered passive (by IRS standards) and can offset accumulated schedule E losses?

We invest in non performing loans and do some private lending as well.

Common comments and complaints are things like....Wanted: a private landlord out there that will rent to me.Why are credit requirements so high?