Challenges?

It is a very challenging area with little development, very little redevelopment, and few food, business, or transportation options nearby. 

Challenges?

I mean the challenge is in complying with them with an unusual structure. 

Connecting with contractors, property managers, and other investors has been invaluable in helping me learn from their experiences and navigate challenges more effectively.

You will just be trading one set of tenant challenges for another.

Anna didn’t have the financial resources to make the move on her own, and on top of that, she spoke very little English, which made communication challenging.

Inexperienced rehabber may be challenged to hit $80k.  

See the chart from Fair Isaac Company (FICO) below: FICO Score Pct of Population Default Probability 800 or more 13.00% 1.00% 750-799 27.00% 1.00% 700-749 18.00% 4.40% 650-699 15.00% 8.90% 600-649 12.00% 15.80% 550-599 8.00% 22.50% 500-549 5.00% 28.40% Less than 499 2.00% 41.00% Source: Fair Isaac CompanyAccording to this chart, investors should use corresponding vacancy+tenant-nonperformance factors of approximately 5% for Class A rentals, 10% for Class B and 20% for Class C.To address Class C payment challenges, many industry "experts" are now selling programs to newbie investors about how Section 8 tenants are the cure.

There may also be costs associated with setting up the accounting for the shells, and preparing inital shell formation meeting minutes, etc...You will also need separate bank accounts, and a war chest of money to defend them if/when needed.Ask your asset protection attorney vs salesperson for a quote on the cost to defend, and how much it will cost to move title to the shells.Find out if moving the title creates a taxable event for you with the IRS re.