They look good on paper, but the realities of low-quality renters, high crime, unscrupulous vendors, and other problems can destroy the investment value.Some landlord insurance policies have burglary as an additional rider you must add on specifically.

Louis with their good on paper numbers for cash flow, cash on cash return etc.

That's easy - give him his walking papers.

The three I'm acquiring were all booked over the phone and written on a paper calendar! 

Quote from @Joe Villeneuve: Run the payments through any automatic money handling source.Escrow account, checking account, auto deposits work great.What about the actual paper work we both sign….who writes that up?

The same goes with paper assets, like stocks. 

I also own a rental property in cash under an LLC that profits very little on paper.

@Shannon Garst The state formation docs are worth as much as the paper they are written on.

I am currently Investing around the Phoenix area from out of state, it looks like you need someone in Arizona on paper to manage your properties. 

I would make the argument property management agreements are some of the most important to get right and worth the expense to ensure they are papered correctly.