It's a good way to hedge against a falling market at least on some level. 

You have been clear that the end investors are the originators of the notes - only doing 1-2 per year to fall under the radar of the new legislation.  

Every once and a while you will see a reasonable deal posted on a listing site ... when it happens around here it is typically a residential real estate agent who had an apartment building fall in her/his lap and did not have the network to source a buyer, so they listed it as they would a house.

You might structure your interest with a note.If you are in title, you will be on the security agreement, deed of trust, but you may stay off the note.Frankly, I don't mind personal liability issues with rentals, good management keeps me from being negligent and in any event someone chases me, I'll sick my pit bull insurance agent and company on them, no one here will get past the liability limits even if 20 kids fall off the roof or the place blows up.

How much more will a renter put into the place when they will your spot in the rent rotation.Couple things about investing:Never fall in love with a dealNever do a deal just to do a deal.  

I suspect in my area of the country (The suburbs of Boston) that deducting 50% of the rental income toward expenses that it would probably virtually impossible to find many properties that would fall into that category. 

I'll eventually do a fix up on my own, but right now I'm trying to fall in love with mastering the wholesaling business!

Finally, rents of $600-$700 - where does that fall in your town.  

@Brian Gibbons I'm laughing here I can just picture it, falling for a Dublin girl.

Real estate falls into the same categories as: taxes & death; there will always be a need for it.