@Anthony DiSanzowhy not stay within driving distance to be hands-on? 

A more accurate way to describe it is "I received no income" - because you can have deals but still have no profit if your expenses are greater than your income.If you were actively looking for deals (and can document it) - as opposed to merely planning to start later - then you file Schedule C and claim business expanses such as marketing, driving, technology and so on. 

Or they are being very very patient to let the amortization arm of the IRR work for them.As they gain experience, money and age, they tend to become more amenable to letting their equity drive their investments rather than keeping it to provide additional cash flow. much like @Shiloh Lundahl's model. 

It varies, but when retainage exists that will drive up the cash to continue to advance the project because borrower won't be receiving draw releases equal to their outlay. 

As far as investing out of state goes, I would pick something you can drive to in 4 hrs or less.

And my recent transactions in IOWA thats a whole nother enchilada with their title abstracts literally compiled and handed to the buyers for safe keeping..

I started my OOS HML  career in Detroit and that was 2002 and WOW coming from our area what an education I got.. my clients that were doing turnkey at the time and all the buyers were out of state ( basically LA based) the local on the ground operator was very good he had all sorts of tricks to try to keep the houses safe.. the one i really liked was painting the copper pipes grey so thieves would not steal them..

Even if someone gives you the lay of the land, you would still want to go there to see for yourself, just as you would definitely have someone come check out Dorchester to see what they consider safe and not safe.

You may safely wait for the best deal to come your way. 

Drive for dollars in all of the multifamily areas, especially closest to you.