That would leave a lot of room for profit.title insurance covers discrepancies in the title itself, like unexpected clouds on title, not physical discrepancies.Home insurance ‘might’ be able to cover some of the issues. 

These are unfortunately not very useful for assets physically located in the US as a judge may directly seize the asset in his US reach, completely disregarding the offshore entity.

I got a property in a hot market for almost half price that way from a homeowner with a property with issues who's sick and cannot physically and mentally handle it.

The listing has photos and it looks rough, but if we can't physically look at it, how do we know what will need fixed? 

Any competent handyman or electrician should be able to address any physical issues on your side of the interface.

Basic above average return I could take a note risk,  the physical risk opens me up to extreme upside.

What I was always told is to always remember how hyper local real estate is, a beautiful property physically and financially can be crushed if the neighborhood isn't hospitable and doesn't seem to have a horizon for improvement in sight.

I am really curious if hotels can be retrofitted to compete with AirBnB, or if it is not physically/financially feasible due to HVAC needs.

But it does confuse me when they ask for the businesses physical address.

That doesn't always mean physically distressed, it could mean financially distressed.