The problem is that we need to be careful with the word "passive" because it has a very specific meaning in the tax law, and it is not intuitive.For example, losses from rental properties are usually passive but not always, there are some exceptions.

They're also often not familiar with the local area (people tend to find listings for large buildings first and if they're new to the area they're usually more comfortable with large buildings).

And they are usually referred to as coaches, not mentors.

So, that usually means the investor is working with their own cash or a hard money loan. 2.

Better locations and refurbished units usually have less turnover and vacancy.  

And yes, it would need to season, usually 6 months to a year after you close.

I’ve been looking at properties in Texas under $60K that could generate good rental income, but I want to understand the common terms and structures of owner-financed agreements before jumping in.A few questions I have:Typical Agreement Terms – What are the usual structures?

The area is also geographically constrained between the Great Salt Lake, Utah Lake, and the Wasatch Mountains, leading to the low supply in housing.The geography reminds me of coastal cities like Los Angeles, which are usually sandwiched between the ocean and the mountains.

@Peter Dukaj There are some of those products out there, though they are usually reserved for experienced developers with decent net worths. 

There are some people on BP that could tell you how they have personally done insurance on wraps… However With the likelihood of them being attacked and criticized by those that don’t know or don’t like these sort of transgressions they usually hold their peace..