Each state has its own laws.Mostly determined by your tolerance for risk (10 small rentals v. a single 150-unit).Segregate character of income (rental income from dealer income, etc).Segregate by character of risk (landlord premise liability v. construction personal injury).Segregate by participants (spouses v. unrelated 3rd party).

Quote from @Matthew Irish-Jones: @Kristine O.

This reminds me of going to a car dealer.

A heroine addict, a person who removed their face, growers, dealers, mentally ill people, crackheads, drunks, parolees, a gay hoarder, a con artist Orthodox priest and all sorts of other low lifes.

I just wanted to say thank you to everyone that weighed in here, they have all made me adjust my approach to this deal.@Eric

@Matthew Irish-JonesHey,I’m new to the business I’ve you probably read in the thread, looking for some sort of factor to help me decide with my first investment what would be best route to go as far as wether to start with a quick flip or start off with a rental property.

It turned out to be a combination of the market softening, too much inventory in my price range, a realtor with an optimistic listing price, and the drug dealer next door.

I'm also a car dealer and my son's manage that business and also help oversee the rentals.

If LL signs an annual agreement, and the tenant turns out to be a drug dealer with 3 dobermans, weekly late-night parties and the LL will have no way to act upon this as long as the tenant is paying on time?

How much market share and distributors we lost, because we could not supply our dealers in an upswing?