All sorts of weird things can happen from time to time, but simply in terms of basic economics it isn't a stable arrangement. If you're making passive income that means you're operating inefficiently and someone could eat your lunch. The only exceptions that come to mind are significant moats and regulatory capture.
Agree. However, this is the main argument for yeti living somewhere. And property passive income is indeed very yeti-like, there's always somebody heard something, but with closer inspection it's either not that passive, or not that income-y. Or maybe it's like resonance particles: happens, but too unstable to be registered. There are plenty of forces both political, and economical working against it, after all.