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

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

@Arron Paulino Your posts illustrate the challenges of exiting SFH's in markets where the natural buyer is another investor and not home owner.

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

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.?

Real deals with real economics rarely face allocation challenges.

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?

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!

That will be a future option we look into with multiple properties and tenants but we can handle this one for now.

It is up to you to accept it, ignore it, or whatever else you want to do with the fact that what you are doing is not correct.What you do with that info is up to you.Don't come here challenging me to prove it.