He told me he got out of the business because, in part, he could not "operate" in a physical manner with deadbeat tenants.

This is a pretty large radius, and there are many spots that I believe can sustain a decent appreciation rate over the next 3 years, especially along edwards mill road in my neck of the woods.

When you add all that up, it will eat more than your monthly posted cash flow over the long haul.Now, if you bought in an area where you could likely expect great future appreciation and could sustain negative cash flow in exchange for the tax deductions and future large appreciation, then perhaps you have a decent deal for yourself under such circumstances.

And, as Jon indicated, in my area, permits can only be pulled by licensed GCs.So, when we need to pull permits on jobs where we wouldn't otherwise have a GC, we have a GC that will pull the permits, check in on work and call in for inspections for a flat fee per project ($1000-1500, depending on the number of inspections).It's a good deal for him (only a couple hours of work) and a good deal for us, though he obviously needs to trust that we'll do everything to code and in a workman-like manner...

If you were looking to purchase a buy-and-hold rental in this manner, what sort of terms would you look for that would be fair to both parties involved?

Bradley, Please expound a little, maybe even in a new post. very few people ever seem aware or educated in economics, and banking economics, in a informed manner, not to mention when the political strata is thrown into the mix.

Putting your materials together in an accurate and professional manner is very difficult and takes tremendous experience and skill.

They put together a "cottage development" ordinance 5 or 6 years ago to encourage more sustainable development.

I'm hoping what happened in Iraq is sustainable.

I'm not sure about other states (although I imagine they're similar), this is what California law states regarding the members and managers of an LLC:California Corporations Code Section 17158(a) No person who is a manager or officer or both a manager and officer of a limited liability company shall be personally liable under any judgment of a court, or in any other manner, for any debt, obligation, or liability of the limited liability company, whether that liability or obligation arises in contract, tort, or otherwise, solely by reason of being a manager or officer or both a manager and officer of the limited liability company.