Its much harder to turn a property around in 6 months expecting to have 100% of your money returned back to you - but if you focus on the right property focusing on highest and best use with an ADU add (like mentioned), in-fill/lot split, or other rehabs - then hopefully a semi-decent property like that will perform like a champ in a few years. 

As someone mentioned, the only thing passive about real estate investing is the tax treatment. 

They are so tax beneficial! 

Best way to think about hard money is as a bridge loan.

So the only money out of pocket is any closing costs that don't get worked into a new loan.

Safeguard Capital Partners with Zimple Money.4.

@Brett RiemensniderYou don't need to provide anything to your tenants tax-wise.

Maintain - includes taxes and insurance?

@Rafael Ramos All your goals contradict each other:(1) Cashflow: buy Class C & D properties2) Appreciation: buy Class A & B properties3) Low Crime: buy Class A & B properties4) Why would you want your investments to lose money to lower your taxes?

A line of credit won’t commit you to a monthly payment unless you use the money, so you can avoid paying interest when it’s not in use.