In particular look for ones that are professionally managed but performing poorly.  

If you are looking for passive income, validate to pay history and perform enough due diligence you are comfortable payments will continue.I use an old school HP12C to calculate yields and cash flow.

You should also expect to perform a second inspection once the turnkey operator fixes any items found on the initial inspection (everything is negotiable).

Ana,It's not so much a function of how much time you spend at each location.Rather, the IRS is concerned more with the necessity of having each location and what work is being performed at each location. 

Hello BP members,I'm Clint Walker owner of PREMIUM REAL ESTATE INVESTMENTS,LLC and I invest in Non-performing notes.

In contracting , the contractor isnt receiving a "cut" , they are charging for the work performed .

Once you have a contract drawn up, the settlement company performs fairly generic work to close on behalf of both parties... more importantly, what terms has he suggested for seller financing and how motivated is he to "offload" this property?

However, I occasionally buy Non-Performing and Performing Real Estate Notes.

In an option, you can not have requirements for performance by the optionee either, otherwise it can just be a purchase contract and that could effect the option price paid.

Well you know how arson is just another sport in that city.. sure enough  one of his houses got torched it was vacant for 6 months insurance rejected his claim. he lost 60k right there.