I have a very sophisticated formula for figuring out if a property is a a war-zone or not....Drive by several times, at different times of the day and evening.Then ask yourself two questions...1 - would I feel safe walking down the street alone at night.2 - would grandma feel safe walking down the street alone during the day.

I now vett any partners I am considering to make sure that they are financially sophisticated and knowledgeable in real estate.

I would recommend most -- but not all -- of my contractors to other investors, and because I get asked for LOTS of recommendations (my cabinet guy jokes that we should be on his payroll), this is very much an incentive for my contractors to be reliable;- For my best contractors, I'll give retail referrals as well; I actually have much higher standards for referring my contractors to friends and neighbors, but the contractors who get these referrals tend to make some good money.

Hey Mark Updegraff, I've never hired employees for me personally, but whenever you consider this, you need to factor in workers comp insurance, and about 8% of payroll taxes.

What about the quality and sophistication of the tenants.

Nathan Emmert I know you are pretty financially sophisticated.

He didn't try to BS me, he knew I was financially as sophisticated as he was.

Which means quarterly SE estimates and paying the full 15% payroll stuff, right?

Regarding disclosure and sophistication I would have to agree that more is better on both accounts if things go awry.

Expected W/T comes down to your ability in selecting good tenants, if some guy doesn't seem too sophisticated and he owns a Harley and it will fit through the door......well, some wheel them inside, if you can't pick'em better than that, you'll learn.And, who says dad would not like to have an office?