We have supported as lender when folks purchased for $17,000 and sold for $30,000 same day.The flipping, land lording might need some cash of your own; even though you can get lender involved for portion of it.There are other tweaks and variations on real estate; which you can explore as well.See what works best for your situation and change as you grow.

My end game plan atm involves setting up shop in Florida in some form so perhaps we will run into each other in the future. 

If you get yourself involved you have gotten in the way of them doing their job.As for the rule miscommunication.

He is willing to provide the cash and only wants a 10% cash on cash return, no equity or involvement in the property or business itself.

for instance if I receive $1600/mo for a 1br/1bth how much more could I possibly get.Note these are in pretty good metro areas, C+ to B+ within a couple miles of the beach.I plan to not be super involved and outsource a good amount. 

@Matt Eklund the question is how involved would you like to be, and how adamant are you about systems.

My personal duplex, 100 yr old wood frame home, had evidence of dry wood termites and I refused to get professionals involved.

I’m NOT interested in getting involved in any shady business!  

So they are being managed for free, although we are heavily involved in everything. 

If you're goal is to learn as a passive investor, it is definitely possible, but you won't have much day-to-day involvement in the deal, as I am sure you are well aware of since you're currently an investor in a deal.