And then there is the most dangerous ones of all...the ones I am finding a lot of lately.

Personally, I think fewer properties with more units is the way to go.

It may be a longer and harder process selling this type of property as there are fewer buyers for cheap rural properties.Also I wouldn't place any bets on appreciation, so it is likely that if he decides to sell in a few years, he will only get back his initial investment plus any debt pay down.

It’s a distinction without a difference and only important, really dangerous, when friends or family think they can skimp on the rules because they call themselves a private lender. 

I have to paint it so I'll just replace it with new can be a dangerous mindset for an investor.

Most of what passes for pre packaged real estate “education”, is misleading at best, illegal and dangerous at worst.

Sounds like you don't know much about notes, it would be very dangerous to buy them without knowing what you are doing. 

The fewer investors the better.

Additionally, stating you need to take title in an LLC is also not necessarily accurate, one needs to consult their CPA or real estate attorney to determine which entity format is best for your specific situation.These types of partnerships can be full of future problems and dangers, even when the intentions are all good.

Not to mention, tree work can be dangerous.