I am looking to buy and flip houses with only cosmetic repairs needed in order to get extra cash to put towards my long term goal of passive income. 

Even if I could get an extra $3000 per year, that is like a 20% IRR, is my math right on that?

I think it's important to have a business plan. i havent started my investing yet so take my opinion with a grain of salt but the more I think about it the more complicated it seems. really what im trying to do is just buy multi family properties at some kind of discount. add value by renovations or by purchasing in a down market. then fix it up to my companies standards and get them rented out one unit at a time. some of the things ive been thinking about include financing. how will i finance deals after the first 4 or so when the banks stop lending traditionally. also how much do I need in resurves to cover everything from fees to extra holding costs to a major cap expenditure. i want my business to have a plan so i will succeed no matter what. so i think its important to think about those types of concerns regardless of what type of investing you're doing and factor those in to your plan. im excited to save money for the first deal im only at 3k so far.

I have a 2 units house with an extra lot that could hold the same 2 units home.

I'd also like to know if anyone has any tips for making sure the current seller is telling the truth about the tenants, so I don't get stuck with a seller who is talking up the tenants just to get rid of their property. 

There is no extra hassle involved besides the time difference, as i said before.

Will check again on Monday, just to be extra cautious.. 

It's a great way to learn and interact without budgeting extra time.

Sounds like you'll either need his ink (plan for extra $ for a notary to visit the jail) or a court order recorded among the land records (or however it works where you are located for enforcing an agreement pursuant to a divorce/settlement), i.e. court involvement. 

That's too much extra work for you.Also, however you're marketing this to get the leads, add a line that mentions credit score and 3x monthly rent.