And in the end didn't make me money and the loans I had on them actually prevented me from getting additional loans on other better deals.Anyway, here are the specifics:1) purchased 7/1997 @ $80k, $500 down payment, cashflow appx $150/mth as long as there were no major repairs or maintenance items, great % returns but very little $ returns.Sold 5/2016 @$67k, after about $7k rehabwas about $250/mth cash flow at time of saleOh, and it took many months to sell, therefore costing me additional holding costs with no cash flow2)  purchased 9/1998 @ $71k, Similar and same area as #1 - $500 down payment, cashflow appx $150/mth Sold 4/2016 @$72k,after about $9k rehabwas about $250/mth cash flow at time of saleand also took many months to sellFor fun, I just looked up their zillow as of today and 1 recently resold for $85kNow, today, there are a lot more resources to easily research market areas, etc, so I now do more research to find markets with more demand and growth potential. 

Some are easier inspections than others but some turn into larger projects (this can be prevented with better screening in leasing but we inherit bad tenants or poorly ran previous property manager problems often). 

They should be able to provide rent and prevent maintenance. 

This will alert the owner that he/she is being fined and he/she will most likely take action to prevent multiple fines.

If the appearance of being in an LLC prevents one law suit it is well worth the cost but it may not ever prevent a law suit. 

Adequate heating is essential for comfort and to prevent moisture-related issues.3.

Make sure you have a detailed scope of work signed by the contractor to prevent disputes.

I would also consider the possibility of raising the property as well to prevent further flood damage. 

How are they incentivized to prevent move-outs? 

I'm not trying to prevent him from making money as much money as he can, but something seems off with such an arrangement, that primarily results in him effectively keeping 67.5% on most deals.