One of the main issues is insurance companies NOT insuring many of these areas.

That's the main objective.

I get that you are from there so you are getting emotional and taking my comments personal, which were not my intentions. 

For my family investing OOS is a big long term goal (most likely south with mountains), but it's never been the main plan. 

Quote from @Jessie Matlock:One of my main questions is, I've been told I'll receive a K1 statement and that my monthly returns will be tax free. 1) Is it true they will be tax free? 

Hard money lenders have a good amount of flex when it comes to FICO score and typically the main issue that borrowers with low FICO's have is that their max loan size gets cut which doesn't seem to be an issue here.

The 5-10 it gets heavier and a lot busier, and 10-15-20 it really is untenable to self-manage especially if this is not you main business like a person buying their own rentals and building it like a small business. 

Turns out the theory was right, but the decline has been even steeper.You might be able to predict whether a future market will be better or worse than the current one, but predicting how much worse or better is nearly impossible.And don't even get me started on how sponsors could be manipulating purchase cap rate, whether intentionally or unintentionally, by reporting pro-forma caps, non tax-adjusted NOI, and so on. 

And a lot of old school GCs may not have the ability to take a CC and may not care to learn how to...Main question is: why do you want to do this?

The structure is mainly appreciation-based, which minimizes tenant and maintenance risk.