@Cory M.Depends what kind of banking you need, but after searching high and low state department federal credit union (with an American citizens abroad membership first, like 100 bucks) and capital one have worked best for me to avoid the nightmare you mention of trying to deal with US banks from outside the US.

Hard to see anything out of the ordinary at all in this. 

For the branch at Lihue, on Kauai, the phone number is:  (808) 245-6761Another option is American Savings Bank - (800) 272-2566If I can serve you in any way, contact me at any time.  

You will pay ordinary income on the interest.

Then if/when I pay myself in the future I would also be paying ordinary income tax on what I receive.

Maybe that person didn't find the right agent...I get it when an ordinary buyer comes to a new region and I have explain and convince about the taxation, transaction process, etc. 

When I returned to live in the US I rented the condo exclusively to Americans.

There are programs like Russ Dalby’s American Note Network mentioned above by Jay were proven fraudulent.

This is a big part of the problem "AMH, formerly American Homes 4 Rent, grew its portfolio of single-family homes by 8.5% between 2019 and 2021, but its fee revenue grew by two-thirds during this time period, according to the group's securities filings.

My personal privacy is not an issue for me but based on the American legal system, lawsuits being reduced to the status of a lottery, I understand why most prefer to hide.