Have you ever heard of banks having in-house policies limiting mortgage opportunities to only primary residences? 

If it is after the first 6 months the interest jumps to 50% so it is rare that any property is ever redeemed during this period.This is all for tax auctions.

If there is some larger projects that are not a part of your $20,000 rehab budget, then thats probably right. 

I know investing in real estate is never completely passive, but from those of you with experience in larger properties like this, what types of situations typically come up that the owner has to resolve or become involved in?

That will allow you to A). make some mistakes with a lot more leeway than a newer investor starting now or have them work as investment properties at your basis where someone buying today would be cash flow negative or B) eventually sell or refinance the properties to raise the equity for higher return or larger scale investments.   

Certain types of commercial space can go dark and not find another use for 10 years if ever.

To that point we began to look at larger properties in the 50-150 unit range.

@Nick Rutkowski if you’re ever buying near Raleigh, sure lol.  

Be aware of the risks and don't ever risk more than you are willing to lose.

Saw recently it's on track to grow larger than Birmingham.