Like @Jay Hinrichs mentioned a local investor could probably get 20% COC, but that is difficult for most out of state investor seeking passive income.

It is difficult because some people who have invested have lost their money simply because they did not pay attention to the timeline of their investment. 

If they are out of state homes then doing this on your own will be more difficult.  

The transfer out of the EAT can sometimes (depends on the jurisdiction) result in another documentary transfer tax, but the actual transfer process is not difficult.

Trying to convince somebody to make as dramatic a switch from stocks to real estate is quite possibly one of the most difficult things you'll ever do.  

I have heard that investing and doing deals is much more difficult with a license, but I have not been able to get any specific answer as to why. 

I appreciate the thought, and am even trying that as well, but I do consider my area (the NYC area) very difficult and want to diversify a bit, I guess you could say.

Just by way of example, a nice property in a major metro came upon a major listing site recently, and for the love of God you cannot get through to the broker/owner who listed it because everyone recognizes it for the deal it is and he's got his pick of the litter.Conversely, I've encountered brokers with less hot offerings in less hot states (10-12% caps in Ohio, Indiana etc), but they're just difficult.

Shall I try different title company or have difficult strategy?

Once you rehab and rent out the units, those elements will have to go elsewhere, hopefully far away and not just next door.It's very difficult to value these kinds of projects since they don't cashflow.