You could also create a trust but that comes with a little more administrative burden than a will.

One point of contact also reduces confusion and administrative burdens.Comprehensive Risk ManagementA consolidated program allows for a more cohesive approach to risk management.

My experience was ok - one of the tenants was dealing drugs from the apartment.

Is the process administrative, or judicial?

I have a tenant who I believe to be on some type of heavy drug like herion, or meth ...I recently inspected the property it was full of garbage everywhere some hording, it's just trashed. 

This can be a pretty significant administrative burden as well.What you will likely want to look at forming is just a multi member LLC, taxed a partnership, with a manager (you) and draw out the terms in an operating agreement.

Your 401k administrator will help you set this up and usually you have to make monthly payments. 4) If you default on your 401k loan, the entire balance is distributed to you, then you have to pay taxes and a 10% premature withdrawal penalty.

Also, depending on the area, codes and historic have been a big pain especially since the new city administration has put a much higher % inspection requirements for "cosmetic rehabs".I've been able to turn majority of the units in the last 3 years. 

If you get a loan application like that and they tell you your interest rate or leverage will be based on the answers expect the loan administration to also be robotic which is often adverse to your objective as a borrower. 

Consider the administrative costs of maintaining an LLC before proceeding.