My partner's client is spending just under 200k for an ADU and will be renting it for 1800/m.

With $20K to work with and a being new to US real estate I would recommend partnering with someone local.

If you want to be truly passive while living abroad you could consider a DST transfer or syndication where you transition your properties to professional management and get paid as a limited partner and not have to worry about any sort of property management takes.

I'd really vet the developer, their past projects, talk to prior partners (GP & LP) to see how prior development deals worked out and how the communication was, etc.

My partner and I have a couple units we manage as well in Washington DC.

The gist of it, the way I currently understand it, is they’re “partnering” with local investors who want to buy/partner on the first mortgages, go through the appointment process (through their sister company law firm) to be able to repair and rent out the property as it’s going through the foreclosure process.

For a truly passive experience you'd probably need to be an investor in private equity deals or be a silent partner on a project.

I also co-own a rental property in AR with my business partner.

I suggest you find other sources of income or partner on deals to grow your real estate portfolio.  

I’m passionate, hardworking, and eager to dive into creative financing opportunities and learn from those who’ve walked this path successfully.If you’re someone who enjoys teaching, partnering, or sharing insights, I’d love to hear from you!