The business model is just not geared to that. 

I started using the exact same model mentioned above. 2016 I did 1 project and decided to sell instead of refi after seeing how negligible the rewards were with respect to time and effort.

I've done some deep financial modeling dives with James on his Nomad process.

Could a prudent investor go all in on this asset class, assuming the investments were blended across the risk/return spectrum (i.e. some low LTV or debt free, some 1st lien loans, some higher LTV, etc)I'm asking purely regarding a passive investing style, assuming no directly held real estate but rather only a syndication model as a LP.

They do have scratch and dent, but I stick to new in box models that are 1-3 years old.

Are these potentially model tenants or do you see issues?

According to the seller they have been model tenants.

@Joshua Rountree you may want to go to a few model homes in your houses price range and compare what they consider finished to what you have done. 

They stated that they used to do traditional turnkey and now converted to this facilitative model.

But that's most likely not going to happen.The business model seems at odds with "Real Estate Investing".