Don’t get me wrong, I know everyone is taking the hit, and we have to accommodate people that are really suffering, however; my concerns are related to tenants that have money, got money from govt, or in some cases are getting more money now than before, and choose not to pay rent.

I am an out of state investor and wont be able to travel to the location to assess myself. 

I would look at just better area's Ontario is okay but Alta Loma or even further in by rancho cucamonga brings higher rents.Most house Hacking situations wont pay the full mortgage but they will pay more than half.

Passaic has okay parts,the rest are D areas and most wont touch like George said.

For independent operators if you bought right and don't have too much debt you can weather the storm, but nationally large chains appear to be suffering.

It still seems to make sense to do it this way as capital gains are taxed at 15% (vs. 30%+ for ordinary income) and I wont incur the tax liability until property is sold.I am most concerned on how to actually perform this action and if there are any hidden pitfalls I should consider prior moving forward. 

There wont be much other expenses and i live close by so i can self-manage.

The reason im looking for 0 down options is the prop. probley wont be a big discount but if I could get a cash flow with no money down then maybe it could be a win win.

He fully understands I wont be fixing it and it's his responsibility now to get it fixed.

When your entire investment is tied up with one note, you can really suffer if the worst case scenarios happen that you envisioned.The reality in note investing is that there are some things you cannot control or know ahead of time.