I eventually found investing in syndicated deals to be the perfect combination of being passive and giving me the benefits of owning physical real estate.

The policy in the lease is that tenants should not make any changes to the property, but I would like the opportunity to make exceptions when it makes sense.I will require this to be done by a bonded and insured contractor, and require them to sign a physical document that outlines the terms and costs involved.

I have visited sites that show me important stats but obviously being physically in the market (or having someone there for you) is best.

Can you bid online or do you physically have to go to the courthouse for these auctions?

On top of the obvious property-specific physical risks, there are many others.  

I have physical issues that prevent me from doing most traditional work. 

Simply having to physically get a check and show up to a location slims down your competition by a large margin.

When we find a motivated seller and agree upon a price and signing the contract, do I physically give them $100 to $500 in earnest money while I'm locking up their property for 40 days or do I give it to the lawyer office who does the title search?

Verify the tenants are paying tenants versus physical occupancy. 

It is 75% a people business and 25% about the physical real estate.