Build an SMB on top of your real estate (the reverse of #2)Short-term rentals and high owner-participation real estate businesses can have great returns.Obviously not for you if you just want passive RE.We are in the deep end here, where each case should be judged on its own facts and merits by your CPA.You should hire a professional to review your particular situation before you make an investment.

You can outsource and automate all you want but when you run into your guests in the driveway and they want to talk you can't just walk away....your reviews will reflect that.I used $1100 and $437 as a real example. 

But I agree with @Stuart Udis - when making offers on occupied rental property, I always review the Financials including the RR & T12.

Seems too good to be true, but after reviewing their numbers and deals it's a great investment.

If the covenant specifically prohibits renting out rooms or STRs, you may be restricted from doing so.You should carefully review the covenants tied to your property to understand the specific restrictions.

There customer service responds timely but I'm usually stuck with more answers than questions. 

A better approach is to network with other experienced passive investors and review the offering together. 

I worked for a big time syndicator in the late 80s and they had 5000 plus investors and customer care was always challenge with no many investors.

So, you have to understand your customer as well as part of learning your market. 

At the time I looked, 20 or so years ago, the problem with smaller down towns is the proliferation of nearby strip malls, where the stores are surrounded by a large parking lots, and for laundromats, attract more customers as they can park easily, walk to adjacent stores for shopping, snacks, and browse newspaper and magazine racks, which explains why they do better, there's more customers.