If you don’t want to be as active in your property’s management (i.e. you’re not cut out for “by owner” management), then hire a good property manager to handle the nitty-gritty details like prepping the home for the next tenant. 

I wouldn't mind just paying someone to sign the permit, and then handling everything myself to be honest.

I totally understand that real estate is not a passive investment, I've worked exclusively in the multi-family real estate world for the last 10 years and I would be the one findings deals and handling the day to day  Unfortunately, they are old school and don't talk about finances with the kids.

When things go wrong, in the case of an owner-occupant losing employment or having some other financially distressful event, how will this be handled?

Do you homework, make sure you can handle potential vacancy, and go for it.

I use an an eviction company to handle everything so it's done right. 

The way I have handled this in my parks is to simply give them the coach and raise the rent.. 

I am a licensed Realtor in New Mexico and handle my own deals as well as working with other investors in the area.

How do they handle capital gains, which seems to be the issue.

If a tenant were to upsize the fuses, it is a major fire hazard because the wires can not handle the extra amps and now the fuse will not protect the wires anymore.