Well you better have a large wad of cash sitting around to either pay off the first mortgage to not get wiped out or reinstate the loan.

Also, there was regularly raw garbage or trash bags left sitting on the ground. 

It seems you’re trying to arrive at your investment thesis while sitting behind a computer.

I don't recall home owners being bailed out in 2009-2011.

Great neighborhood, great school district, big house, rehab done very nicely (may be biased) working with a very reputable well known agent and it’s been sitting on market now for 40 days even with a price drop.

But I'm hoping to lead guests to book Direct as much as possible so the OTA's can't sit on the deposits for months!  

How will you manage them while trying to be "passive" and sitting on a beach sipping Pina Coladas?

It's the landlord who ends up cleaning the tenants ranges and scrubs out their bathtub; typically while the tenants sit in the living room and watch TV (ask me how I know).It's not a two partner job. 

You might put down 10-20%, which can be easier to manage compared to traditional financing.A motivated seller can be open to different terms, especially if the property has been sitting for a while, so just be creative and make sure the deal works for both sides.

So, 5% reduction is LESS than letting it sit vacant!