There are documents that normally third parties will ask you about your 'status'If you work with a property management company, theoretically, they are suppose to withhold money on your behalf which trigues you having to file a return.You may be required to file a 1040NR which is different than the 1040 form that Citizens / Residents file.

The do everything they can to try to make us look bad/incompetent to the buyer/borrower to get them to transfer over to their lender...which they make tons of money on.

Why would someone even attempt to buy if someone doesn't have the money? 

I don't love the idea of giving up my sub 3% mortgage rate and paying more to borrow money, but sitting on that equity and not putting it to work makes me feel I'm leaving a lot of growth on the table.

Some people decide to leave their jobs to invest in real estate, which might involve buying a property that initially loses money.

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If neighborhood class is important and you are planning on investing any significant amount of money, then its worth having boots on the ground to see, smell, and feel the area.

You mean the money coming in from the bank?

People use it because the higher LTVs allow them to raise less money (which newer syndicators and “portfolio builders” need), and project higher returns (which attracts capital from investors who might not fully appreciate the risks).  

In my opinion, every place, every strategy, every asset class, etc. has investors in it making money AND losing money!