There are numerous reasons why they usually do not make good rent properties. 

And all properties need to be managed and supervised numerous times per year; giving residents the idea that no one is watching and/or no one cares will be a sure recipe for disaster. 

Quote from @Brandon Croucier: Quote from @Chris Seveney: They are more than a one man show - they are doing $10-12MM a year in lending (also have other parts of business) and have the people and systems in place includin g all above except the deal flow.How does one profitably run a PML company with numerous people only funding 10-12M a year?

My core investing philosophy is pretty simple, and has done very well across almost two decades and numerous cities:1) Invest in cities with population (and job) growth2) Invest in parts of the city where household income is near the median (or slightly below)3) Invest in properties that provide cash flow from day 1 Thank you for sharing that. 

@Stefano Mitrano I have seen numerous banks reacting if an asset is being transferred into an LLC.

I faced numerous hurdles and stressful moments, but I persevered and built a successful approach.To tackle this challenge, I recommend starting early by building relationships and seeking investors.

Search the BP for ADU appraisals to encounter numerous examples.

Chances are you have someone with honor transparency and integrity on your hands and that is very rare.If the answer is no... well, if he lied to the homeowner, why would you think he would not lie to you?

I work with numerous out of state investors that want to purchase here in Cincinnati and expand their portfolio.

Since you've stayed there and the lot is open, I see the lure, but any time I see something like this - "This is a pure emotional type of investment and I want to honor it."