While I haven't personally experienced a tenant causing major fire damage, here are a few thoughts and suggestions based on what I've learned from the BiggerPockets community:First and foremost, I hope everyone is safe and unharmed.

I really see Columbus Ohio as an extremely safe bet for the next 10-20 years.

. - 6% cap rate reflects a nice safe part of Los Angeles, California, a prudent investment, not one that will make anyone rich overnight, but a place that higher net worth individuals park wealth to preserve it (imagine the depreciation write-off). 6% cap rate also tells us, right off the bat, that we're going to be in the ballpark of 60% LTV.- We will stipulate that this is hypothetical. 

That’s a big number for Terre Haute, in my opinionIf I wanted to be on the safe side, I’d do the sewer camera inspection.I wouldn’t count on getting much from the warranty.

If they were one of "the good guys" they would not take money from investors when they know they have zero real estate experience, cannot evaluate the risks presented by the investment or flat out say they are looking for a SAFE income producing investment. 

Are there self-directed, non-safe-harbor solutions that are more cost efficient than safe harbor plans that I am missing? 

A cookie cutter first deal looks like:Purchase: 65k - 90kRehab: 50k - 75kARV = Project Cost/.7Neighborhood: B or betterRehab type: cosmeticAvg Days on Market in zip code: 30 or lessThat's an example of a very safe deal for a lender to fund for a newbie.For a 0 experience expect to pay 11.5%+ in interest.Keep in mind the cost of a project's lifecycle. 

While this might sound low compared to some high-yield investments, it's steady and relatively safe given the high down payment and the over-market selling price.In conclusion, while the 3.03% CAGR might seem small, remember that this calculation doesn’t consider other potential financial benefits like tax advantages or the value of having the capital upfront.

The need to act fast to address lease violations and knowing how to safely evict when needed.A property manager isnt a MUST HAVE but it surely helps to scale your investment business if thats the goal. 

Sellers over price the property in their mind and belief, so it requires some negotiations once they are located.There are plenty of properties that have not been on the MLS to buy, but the techniques we use to buy them means we have equity at purchase and we don't need to use banks to do so.It does require capital, and an understanding of what makes for a safe investment.