The biggest mistake I see out of state investors make is relying on others too much for direction and guidance instead of doing their own due diligence and building their own team that they actually meet and interviewRelying on one person who alleges that they have a 'team' built already that you can use as well can be a costly mistake.

You now don't seem like the type of person most of us would accept a recommendation from.

I haven't personally dealt with any crazy insurance premiums such as the ones people have been advertising in like Tampa, FL.

But the risk to the seller on this deal is immense you have a guy tying up a property who has no ability to close it and then sell it to whoever will give him money and that person could be nefarious get into title rip rents could give 2 craps about the sellers credit etc etc..

The first is that there's no consensus between tax professionals, and the second is that you will not like my personal interpretation.My interpretation is:Until the property is "placed in service" - everything goes into basis.Illustration.You buy a property July 1st.You finish rehab November 1st and put the property on the market.Your tenant moves in January 15th.The property was placed in service November 1st, and it does not matter that the tenant did not move in until the next year.Everything paid between July 1st and November 1st, including interest and utilities, goes into basis.

We've not met in person yet, but know each other.

I personally feel it's very intrusive to call someone like this, but maybe it's considered acceptable? 

This is our boilerplate language:Insurance: Tenant should obtain a renters’ policy of insurance on their personal property.

But I don't know your personal situation and all the financial details. 

What RichDad does not tell you is that it takes a driven personality to build a portfolio and if you have that type of personality you will not enjoy a retired state.