Unlike passive rental income, the income from an active trade or business is subject to self employment tax (a nasty 15% tax commonly referred to a "social security and medicare" by working folks).

No sense in wasting their time and gas going to see the house beforehand.

You'd do the work, gain experience and avoid some common pitfalls.

So how does it make sense that the market is paying more for the SAME return? 

I'm going to look at the pictures of the property once he gets them to me and I see if it makes sense to go with less.

-Are you in a field that makes sense for you to be in the setting where the MFH is located?

We did a complete rehab on a single family and it made sense to add central air.

First offer for foreclosed properties are through the Sheriffs auctions that are held every Tuesday at the county common pleas court.

Is this a common practice?

There rates and points are reasonable and they're what I would call a common sense lender I believe with new clients you're looking at about 12% + 2 - 3 points.