The factors you mentioned are very important to keep in mind for any investment, but I like investing in areas I know. 

Some high and lowlights:- I had one tenant that brought German cockroaches in and then blamed it on me- Same tenant asking if her daughter can visit but failed to mention it was 5 more very noisy people- another tenant having constant loud arguments with his gf- tenant saved some of my stuff when the house flooded due to a pipe burst and another time during a monster rain storm.

Quote from @Hanna Brown: @Jay Hinrichs  You mentioned Oregon and WA made foreclosure rescue lease backs totally illegal.

I think you are doing some things that are not required.You didn't need the LLC to start off with.You don't need to build a websiteYou mentioned needing to work on your credit score.

I should also mention we shut off the breaker (to the garage) after confirmation from two electricians and our contractor that we had a serious fire risk.   

For example, I mention that every adult must pay a $30 application fee, pass my credit/criminal background, make a combined income of 3x the rent, and whether or not the property accepts pets.

Not to mention what is your opportunity cost on that? 

@Karen SmithAs jay mentioned private lending has been around forever and it’s really not on the rise - I think it’s always been a large player in the real estate investment space for short term loans.

The other option I have not seen mentioned yet is finding a corespondent who can originate for you.

Whoops sorry forgot to mention.