You generally will not be locking in a 5 year term for instance.  

This type of arrangement works best when each student has their own separate private bathroom in which they would not have to share with roommates and the ability to have a separate keyed lock to their bedroom.

Since I didn't want to lock my money there, I put 16k down and financed 44k.

The next monster of a barrier is you are not going to find a seller who let's you lock up their loan when you don't have any money to buy said loan.  

Many own properties where cash flow isn't great but due to demand have a ton of built up equity and want to cash out before Cali crashes again in values.They are all doing 1031's.DST's and things like that you have no direct control of your investment and are locked in over a certain period of time. 

So if someone depresses the drain plug, water can fill up and flood the bathroom.Is there a way to lock the drain plug so that it cannot be depressed?

I would definitely get over there and get a key if those locks have been changed. 

That way I could have the property locked up but still have time to do a thorough inspection before I sign the actual contract for deed.

The tax is simply a device congress came up with well before IRA's even existed to level the playing field when tax-exempt entities compete with taxpaying businesses.Passive income is not taxed, and would include things like interest, dividends, royalties, and rents from real property.  

Young people grew up experiencing their families being displaced from homes, because breadwinners were locked in to high mortgages coinciding with falling home prices, while their incomes were either eliminated or squeezed.