To name some passive options you could invest in a Delaware Statutory Trust (which you'd purchase from a financial advisor), or a syndicated tenant in common structure (similar to a Delaware Statutory Trust).

@Edith Alvarado de Cortez one option is to buy a property in need of rehab using seller financing which would allow you to pay for the rehab using credit cards. 

Originally posted by @Roberto De Leon:Hello,  Does anyone know if I can convert multifamily into a short-term rental?

You will be able to set up the DST with a one time filing fee and paperwork with DE and then will be able to create unlimited child trusts underneath the parent DST (child DSTs do not require any additional filing fees or state paperwork).

I owned a duplex off of Delaware Ave, near the Spectrum for a couple of years. 

For an excellent Realtor who knows all things STR in Santa Fe, Casas de Santa Fe owner, Todd Davis is a power house on the topic. 

- Should I form the LLC in Delaware as we may buy from different states?

If you are a small investor / business, you likely want to create the LLC in the state where the property is in.If business case law, charging order protection and anonymity are important to you, you may want to create one LLC in a state such as Wyoming, Delaware, Nevada. 

Quote from @Edwin De Angel: Investment Info:Single-family residence buy & hold investment.

@Rand De villa I have not had any direct experience with Bungalow, but we have a similar company in the southeast called Pad Split.