They lose a ton of money through common mistakes.

I like the fact that it gives homeowners and small investors potentially more options on how to utilize their property though.

That will cost at least 2179/year without including utilities. 

I have been waiting for someone on the BP forums to explain to me how a Wyoming LLC will stop a plaintiffs attorney from filing a claim against the deed holder when their client falls in front of your property because of a down tree or ice patch amongst the many other common claims a real estate owners encounter....and to this day  crickets.

Cash Flow: Given the high prices in the Bay Area, it’s common for rental income alone not to cover the mortgage and other expenses.

Word on the street is that Split systems (common in . . . . a LOT of places other than the US) operate at a lower energy consumption rate per heating unit and cooling unit. 

@Chris Allen, everything is going up: utilities, insurance, taxes, management fees, service fees, etc.

C-Corps usually aren't a preferred structure for real estate.I know that with a self directed IRA all of the income has to come back to the IRA - read another way - you can't take the profits from your investments and access them today (so no passive income that you can utilize in the near term).  

The (un)importance of owner occupancy is a common misunderstanding among private lenders.

In the meantime, they will apply for credit, apartments, and utilities through someone else's name.In regards to garnishing wages, unless the tenant works in a higher-paying field or for a certain company that pays more than other similar companies (doubtful), the ex-tenant is just going to leave their job and get another one, and you need to restart the process (after you find out where they are now working).