Reliance on the ignorance or naivete of homeowners to profit thereby is obviously and egregiously wrong, even when not explicitly prohibited by black letter law.However, unless I am much mistaken, there are plenty of ways (particularly in today's seller's market) that an investor or RE agent could actually help distressed homeowners--within RCW 61.34 and the Consumer Protection Act (RCW 19.86)--and still make a profit.  

While this might assist in recovering from the Seller, I doubt your reliance on it would relieve you of responsibility for correcting the violations. 

If your goal is a slower timetable, then that might work for you.But as you advance in your real estate investment career, presumably you are successful and have a less reliance of financing.hopefully you reach the point where everything is self financed, 0% financed.In the mean time, I still say borrow as much as you can for as long as you can (with caveats), and that today's historic interest rates won't last forever, so take advantage of them while you can, they won't last.Millions of dollars of debt can be a burden, ask me how I know that one.

Hence, welfare and section 8 reliance for decades.

And it's very easily seen as a step transaction apart from the reliance on the safe harbor.2.

The reliance on brokers for filling tenant spots in commercial always worried me.

Remember, real estate investment involves risks, such as reliance on tenant payments (like you mentioned) and potential, unexpected, property maintenance/repair issues.In conclusion, both strategies have their merits.

But that had to do with so many different factors that are unique to Detroit (e.g. over-reliance on one industry, CRAZY politics/corruption, CRAZY union issues, a wide geographic area that made it very expensive to provide necessary governmental services, etc.).

This is especially true when you utilize low money down to purchase multifamily.Caution with Out-of-State Investing: Investing out of state entails complexities and reliance on unfamiliar parties, which may pose challenges compared to local investments where you can easily drive to and learn more quickly about.Realistic Assessment of "Cashflow" Markets: While investing in cheaper, cashflow-focused markets out of state is popular, it's important to recognize that the numbers on paper often differ from reality, and success stories may not represent the norm.Manage Expectations: Be wary of overly optimistic narratives and calculations, and ensure your investment decisions are grounded in realistic expectations and thorough research.

Navigating these from a distance can be more challenging.Market Risk: You might not be as immediately aware of changes in the market dynamics, and reacting to market shifts can be more challenging when you're not physically present.Travel Costs and Time: Visiting your property or dealing with issues may require more time and resources, especially if it's a considerable distance away.In summary, investing out-of-state offers the potential for diversification and higher returns, but it requires careful planning, reliance on local experts, and a willingness to adapt to different market dynamics.