There is the risk that a smaller player like myself would have with going all in and not having the large reserves that one really should have to be in larger multis if/ when the economy tanks.There was a commercial guy that gave a very convincing scenario about buying units and how even under bad circumstances you would be ahead so the bigger players should win in the end.

Other Tenant in the property has a past doctors description of their severe allergic reaction to pets( hence why they moved into a no pets policy building). who wins?

Your best bet is to ask the Seller to pull credit or to have a specific disclosure executed granting you permission from the Borrower to pull credit.  

YES if you are willing to admit to yourself that you will be ETHICAL and play the game to win.......

Congratulations, that is a truly a win-win deal for all involved. 

I dont know of anything right now that fits what you're looking for off hand, but there are some neat products coming out these days, I bet there's something out there that'd work for you, I've seen some stuff for out of country investors. 

I noticed others bid high on high end properties betting on getting paid off with a high rate of return and worse case ending up with the property.  

If dealt properly, this could be a win-win situation for both tenant and owner.

Banks and other lenders will be your best bet.  

Also, I would say the next most important thing to consider when it comes to passive investing is WHO you're actually making a bet on.