Is it something where I need to physically be close by.

You get an exponentially better opportunity & reason to invest.Now, there will be headwinds-- climate change, physical capex to maintain physical structures,human beings, etc.

It’s great to have an appraisal that shows higher value but markets are changing rapidly in some areas and unfortunately value is based on what people will buy it forQuick question to the OP: have you physically visited this property ?

Make Assumptions: Consider possible reasons like a tired landlord, property in rough condition, or a bad location.Confirm Assumptions: Ask the seller and consult local experts (property managers and real estate agents).Update Assumptions: Incorporate the new information.Adjust Analysis: Integrate the updated information into your analysis.

Useful insight that I will incorporate to make a case for the partner to leave. 

In my opinion, the disclosure should be in a separate document that is incorporated into the contract and not hidden amongst a multitude of other provisions.

Unlike traditional real estate notes is something that is easy to do from afar since you do not get access to the interior anyways so there is nothing you can physically inspect.You are correct that you will get $500-$600 a month in payments but also recognize its taxed at ordinary rates... 

The wet signed physical piece of paper is the actual collateral for this deal. 

Currently, they track their expenses by keeping all their receipts and invoices in a physical book that they hand to our accountant at the end of the year (poor guy, lol). 

Sure, I've scoured Zillow like it's my job (which, let's face it, it sort of is), but the only properties I find are nestled snugly in the heart of the Midwest, a land as foreign to me as quantum physics.