@David JenkinsIt's just the ratio of Net Operating Income (what you're essentially earning on your asset) divided by the property/asset value.If you earned $10,000 NOI on a $100,000 property your cap rate is 10%.Now you can compare that 10% to how other assets or investments are performing.

I certainly don't want the huge task of screening tenants and showing the property.I prefer to be a manager of managers.

The generalist while helpful might miss some key things that affects the out come and performance of your property into the future. 

There is a permit to perform work, which is what this front door permit is, I assume.

The locals are in these REIAs  know where the good / bad / higher performing areas are.  

you can always cancel if he gives you the full rent payment.start the process, and keep it in motion until he has performed. 

There is a big difference between a loss on your schedule e vs how the property is performing from a lender's point of view(due to depreciation).

. : )I have friends that simply invest in sponsor deals and look at a spreadsheet once each month.There are tasks they have to do relative to watching over their investments but they are very minimal  in nature and easily scale able. 

Hard Money still costs you money and if you can't perform, they get the house.

Try this scenario:You offer for sale w/o a contract or titlea buyer makes the as-is offer all cash for your priceyou accept and take the Earnest Money Deposit (forming a legal contract)30 days later, you still can't get the property under contractThe buyer now sues for Specific Performance (aka forcing the purchase) but you don't have the contract or title.That's FRAUD buddy.