For me a good "gut feeling" is generally enough.Truly passive indefinitely isn't really a thing at least for me.

Honestly, none, if you aren't backing up the calculator with your eyes, ears, nose, and gut.

That means you have limited funds to cover unexpected repairs.My instinct on this is that the seller is trying to hide defects that would cause you either to bail out completely or to try to renegotiate your purchase price. 

I'll be upfront- it was an ego gut check for me personally after making it so far in the military and having a pretty solid knowledge of real estate (about 9 years investing) to be a new agent on a team giving up a good split.

You may close on the property, open up the wall, have someone look at the guts and find there was nothing in there that could have caused the leak, and yet still in a few years find a leak stain coming through in the same wall at a different spot.

For example, when the pandemic shutdown and eviction moratorium hit, my business partner's natural instinct was to sell everything, pull back, and dig in. 

     - My first instinct is to just buy a SFH or duplex in my area (Kitsap County, WA or Tacoma/Olympia) with cash and call it a day but I don't want to limit myself to that

As far as I am aware, certain older homes may need to be entirely gutted in order to upgrade to AFCI-compliant, which I'd like to avoid. 

Gut remodel, new drain,electric, plumbing,roof windows, drywall flooring and carpet What made you interested in investing in this type of deal?

The property was recently gutted with all new mechanicals, so I am not anticipating a ton of repairs or maintenance.