While the intrinsic value of the real property initially seems like a safety net, the reality of the capital stack reveals the risk.

They come up with values unhinged from realities of the market.

You may think you'll just hire more but the reality is the good ones are kind of unicorns, and you're going to go through a lot that don't do good work or don't report things to you that they should.

The reality is you would really be renting to and depending on the husband whom you can not screen.To be honest I have never had a perfect applicant so it has always been very easy to justify rejecting any applicant for a reason that is not discriminatory or a violation of codes. 

That cash flow on paper is non-existent in reality and I don't think the path of gentrification is predictable - will it appreciate enough to make up for all my repairs, etc? 

A lot of landlords are advised to put their properties in the name of an LLC for asset protection.While this is basically true, the reality isn’t what most landlords think.If a legal issue occurs with your property resulting in a lawsuit, there’s a decent chance the plaintiff’s attorney will be successful in “piercing the corporate veil” of your LLC if you were sloppy and being able to sue you directly.

What they are doing in reality is a 1031 exchange and taking $500K taxable boot. 

If really interested to vet the reality of the Proforma I would be happy to give many names that can speak to the integrity of our numbers and how they have played out in reality.  

You can have criteria, but the reality is... just select the best applicant and follow the law.

Also the idea of buying real estate and the reality are quite different.