Agree with @Carl Fischer that you should engage a tax CPA or EA to examine your unique facts and circumstances...However the distinction between who owns the roof is important and determines tax treatment. 

You are better putting your warranty money in a bank account.Even when it comes to insurance, I recommend largest possible deductible to save on the premium.

For example, if you read the annual report of American Homes 4 Rent, the largest single family public REIT in the country, you will notice in the management discussion and analysis section that they mention they don't reach scale until they own hundreds or even thousands of units in one given city.

Those are 2 very distinct things.

* What do you do to ensure that the tenant is responsible for security deposit disputes since that is the largest reason for owner lawsuits* How familiar are you with the newly changed laws that can affect you the owner if they are not used correctly?.

And this notion of managing the manager is overblown, particularly as you scale.  3rd party PMs may accommodate things like communication requests but they are largely not going to change how they manage vacancy and maintenance (the two largest costs of 3rd party PM) on an investors' handful of units differently than the other hundred of properties in their portfolio. 

I feel stuck with the property manager because there are not many options in this area and they have been able to keep it leased up (with some turnover) Some details about the property:18 Unit / 12- 1bd and 6 - studio C+ property in C ish areaSafe area 500ft away from largest employer in area (hospital)Hospital owns the land in front of my building and behind the building. 

What do you do to ensure that the tenant is responsible for security deposit disputes since that is the largest reason for owner lawsuitsHow familiar are you with the newly changed laws that can affect you the owner if they are not used correctly?. 

What do you do to ensure that the tenant is responsible for security deposit disputes since that is the largest reason for owner lawsuitsHow familiar are you with the newly changed laws that can affect you the owner if they are not used correctly?. 

The largest homebuyer segment is millennials under the age of 37, and they are moving out of the pricey Bay Area and into Stockton, Sacramento, Phoenix and Nevada.As for Stockton, where else are you going to find a decent home for $250k?