The reward should outweigh the risk, so if you're on a mountain top..... disregard :)

Explore options like renting the property as-is at a lower rate, investing in repairs for higher rent and better tenants, or selling if repairs are extensive and tenant hassles outweigh potential returns.

The start up costs of a 401k plan might outweigh the benefits though. 

It's all about do the positives for you outweigh the negatives for the location and asset type your are seeking. 

For lower-cost properties, such as a single-family house at $200K, the benefits of having a separate LLC might not outweigh the administrative and financial burdens it incurs.

In the end, the benefit far outweighs the discomfort.If you can't do the deal without "sweat equity", it may be best to move on to one where you can.One of the people in my group did both on his first deal.

There are a lot of factors to consider when get a cost seg study to determine if the benefits outweigh the costs.

If you qualify, it is a nice option.In the IRA format, you need to start with an IRA held by a non-traditional custodian, then have the IRA make a single investment into either an LLC or Trust to obtain checkbook control over the IRA.There are a few firms that specialize in establishing a checkbook IRA trust.If you are investing in non-liability risk assets like funds and syndications, there is a clear advantage to the trust as it is not considered a business and therefore not under the purview of the CA Franchise Tax Board.If you will be investing in rental property, the limited liability protections offered by a LLC may outweigh the cost and headache of California filings. 

The negative risks far outweigh the "comfy & cozy" answers of everyone so far:"I think that level of transparency would probably be important since you will be living so close to the other person.""

There will be some cost to you for that, but the benefits should more than outweigh the costs.Please feel free to reach out if you have any questions.