I mainly operate in the Southeast part of the U.S. 

Keep in mind any premises liability, landlord tenant, contractual dispute with a vendor that performs services in CA will be  resolved in CA if that's where the real estate is owned and operated. 

Before or after you closed, did you go talk to the other three homes and let them know what you were planning and how you were going to operate? 

The most important thing to do is to find quality operators to partner with. 

You'll need a reliable network of local professionals (plumbers, electricians, handymen) you can trust.Hiring a Property Manager:Peace of Mind: They handle day-to-day operations, tenant communications, and legal compliance.Local Expertise: They understand the local market trends and rental laws in Colorado Springs.Cost: While there’s a fee, many find it worth the reduction in stress and time commitment.Lessons Learned from ExperienceBuild a Strong Local Team: Even if you manage the property yourself, having a dependable local handyman and a real estate attorney can save you headaches.Leverage Technology: Utilize property management software for rent collection, maintenance requests, and tenant screening.

And is now larger than ALL of the US banks.Big name investors and billionaire hedge fund operators such as Bill Miller, Stanley Druckenmiller, Ray Dalio, Raoul Pal, now hold and / or are recommending it part of everyone's portfolio.

The goal is to be an investor, not an owner operator.

It feels to me that anything with negative operating leverage is just a non-starter.

I agree with Evan that the other deal terms are fair, but how is the operator going to turn the property from cash flow negative to cash flow positive in order to pay the investors the projected return on their investment. 

This is more common for commercial (5+ units, often lenders in this category want the owner/operator to have experience self managing or hire professional management), and not very common 4 units and under, IME.