I am assuming that even if you strucutred it with a higher purchase price (85% of value) and pre-paid rent it would potentially still be frowned upon.

If you are married - put each one in a single name and you can then have 20 - there are higher qualifications the more  you have though.

Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is expected to be higher, you may consider an umbrella insurance policy.

The longer the development cycle, the more risk on the LPs, the higher the return.

It's interesting because of the low start up capital and potential for higher returns.

When I do it at 20% down, I can only find negative cashflow, so I could be looking in the wrong spot, or I need to put more down, or I am missing something all together.I have read that making a 8% return or higher is what to look for, and I can find break even.

A great location demands a higher price. 

I assume a higher upfront cost as far as land purchase and the actual build but you would have a brand new house, instant equity and hopefully maintenance free for quite a while.

@Denise CarringerMy preference is to go local - some community banks offer this type of service or local escrow companies, which is what I found, because they offer a higher level of service than most national.

Property taxes are 2% instead of 1% for landlords as a general rule (some districts may  be slightly higher).