Review HOA financials before purchasing to ensure they are solvent..

Additionally, the LLC ownership of your rental property will increase the lending and reserve requirements for the property, meaning the investment will be less profitable, while filing the additional tax return for the LLC and ensuring the LLC has adequate cash flow to stay solvent while simultaneously trying to not intermingle personal and LLC funds to uphold the asset protecting capability of the LLC is a whole lot of hassle. 

Hi Max,Watch your MSDS sheets for SPRAYED paints and solvents. 

One thing to be aware of when acquiring this type of property is the risk of environmental contamination of the property by chlorinated solvents.  

When you can buy a house for cheaper than rent that metric will keep the market solvent in most cases.

Is the city financially solvent?

Are banks just trying to shore up capital reserves so they stay solvent in the event of a mass foreclosure event like 2008? 

After all, people do drop dead, if your key man drops out will the brokerage remain as solvent, will management suffer, will other investors be in line to share collections and who gets paid first, just some of the issues to overcome.I know very well the temptation to go national with investors and I'm glad I stayed within my state, mostly within my immediate area.

And how solid/solvent is this friend of your dad's?

If the bank or developer has control they have a vested interest in keeping HOA solvent...so they may prevent that.