They also could provide a written agreement of some sorts as well.Honestly I would be more concerned with the first than the second

I keep wondering about insurance, vacancy rates, if tenant selection is a bigger/ different factor, terms of the tenancy and differences in opex and capex?

My niche was looking for areas that were run down but getting ready to gentrify (or so I thought, sometimes it's just a guess or gut feeling :-)Drive around the areas you have selected as possible money-makers and then drive, drive, drive.

Google took about 1.7 seconds to sort this out.... 

The tenant was every bit as much in on the side deal as Kurt, and Kurt still had to credit every penny.Enforcement types of all sorts tend to go easier on the cooperating/complaining party.  

You will get a lot of applications but be very throughout when selecting the right one.

Most that have tenant problems, evictions,  etc selected poorly. 

So depending what future holds for California, and whether you target appreciation or cash flow, select your locations.

I keep wondering about insurance, vacancy rates, if tenant selection is a bigger/ different factor, terms of the tenancy and differences in opex and capex? 

There is a drop down with lots of options and if you select "no central heat/air" you can't get insurance from most companies.