Of course, with all things, the answers to all these matters will depend on the circumstances.California tends to have more laws on the books and requirements and restrictions that it can be a good idea to form a CA LLC for out of state property so that you as a CA resident are covered, and to try to have your contracts fall under the purview of CA courts.

HUD typically covers their portion of the rent directly to you each month.4.

I buy for cash and then pay about 6 pref to start to investors but I KNOW Sams Club covers all the variable costs because it says so in the lease. 

The property is rented at 850 a month with market rent average at 1300 and she covers all utilities and yardwork. 

For example, does it cover which areas are common areas versus private ones?

Also, does the 1031 exchange cover just the $500K gain (appreciation since converting to rental) or the full $1.5MM gain?

You might be covered if its the second one. 

I will be contacting my agent soon, but I wanted to toss this question to the forums to help me cover bases I might not think about.  

I have some funds of my own, but not enough to cover the steep down payment. 

If you want a Ring, get a Ring.There are a TON of options for cameras out there to cover the door.Ya pays yer money and ya takes yer chances.