What about the financing was bad?

@Maria T. as others have said, preferred equity has a place and can be good or bad depending on how your structure your capital stack and your investment/investor's objectives. 

If that is the case, this will be treated as a disregarded entity so no real tax separation or tax benefits I am aware of.

The pitfalls are obviously bad neighborhoods (easy to gauge talking to brokers or running crime maps) and also find the right property manager depending on the size and class of the property. 

. $100-200 in this scenario is an easy chip-in for us when a situation goes bad to ease the owner burden slightly.

Choices= bad, horrible or complete nightmare (paraphrasing). 

Cap rate is 5.5 to 6.5%, not bad for S.F. 

If there is debt on the property you run into the debt-financed property issue which can cause the rent to be treated as UBIT and be subject to the trust tax rate which increases to 37% extremely fast.

You are getting the the bad financing of larger properties, say 12-20 units and the hard to find good management of 2-4 units.) so I’d concentrate on 2-4 units if you can’t/don’t want to look at 8 or 12+ buildings. 2) That being said, even though 12 out of my 13 properties are in Vegas, they are all SFR.

I've had negative experiences with a bad general contractor and a non-paying renter (leading to an eviction), so I'm being extra cautious in selecting the right lender this time.Could anyone recommend a trustworthy lender in the Los Angeles area who can guide me through this difficult time?