This diminishes the return and I expect outstanding return for residential RE (typically I have achieved the infinite return via value add/refi). 

If the underlying mortgage remains outstanding past 1 year, then I would be obligated to fund for another year, and so on.

There's also an Italian place on the highway close to Centro Maya but I forgot the name.

What they are not mentioning are the outstanding liabilities of that LLC.

Title insurance provides the financial backup to the warranty deed, and requires a title search to verify that no other claims, encumbrances, easements, or liens on the property are outstanding. 

That impacts your reach.The only obvious drawback that I can see, other than price, is the two lane highway in front of the house. 

Remember, one condition that forces people into forclosure is that the house is worth less than the outstanding loan amount.

The outstanding balance of the loan is automatically converted to equity when a later equity investor appears, under terms that are governed by the terms set by the later-stage equity investor.

The city attorney was rather amazed, saying that's outstanding, you can fine them for non-compliance and that still falls within the rent guidelines.

Seems to me most of the things you are addressing can be accomplished by investing slightly differently than down the center of the highway path.