You'll also want to ensure you have a good property manager to look after the upkeep of the property if you are not there to notice anything deteriorating or which may need attention.This article goes into a lot of the considerations about whether to form an LLC or not: https://www.mmpph.com/wp-content/uploads/2019/04/May-2019-newsletter.pdfCreating an LLC in California would cost you a minimum tax of $800 every year.

Most renters are not homeowner material, so if you gift them the home, they won’t take care of it and when it deteriorates to a point where it’s not livable anymore, they’ll simply leave and you will have a destroyed home to deal with.

That is risky, as your current investment will continue to deteriorate.

Houses burn down, PM's steal from you, tenants leave, houses deteriorate, etc.

I mean, who decides what is proper and what is deteriorated behavior?

I do not flip per se my plan calls for me to hold these properties as rental properties Their are many communities across the country Like Dayton OH, that are experiences a loss in tax revenues because of vacant deteriorating properties.

Also even if tenants clean their tile bathrooms, most of the time, the solvent people use on tile/grout breaks down and deteriorates the grout and silicone over time, so lose-lose!

I've set a goal for myself to make (at least) one deal happen by the end of the year. if I don't set goals like these for myself, my motivation can quickly deteriorate.

I have 10 pages worth of properties and the violations range from junk and trash in the yard, to deteriorated roofs, and unpermitted work.

You could have great collateral value but if it takes a long time to get the asset back it could deteriorate further in value and get damaged.Also the money wouldn't be bringing a return in default.