A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings.

Consider forming an LLC for liability protection or an S-Corp for tax efficiency if flipping frequently.This post does not create a CPA-Client relationship.

I remember a buddy who once represented a client in the Santa Cruz Mountains.. this client turned an old barn into a shared art studio and invited local artists to rent the space, which ended up boosting inccome in ways they never imagined.The Redwood market can be tricky because of environmental restrictions, zoning quirks, and limited inventory.

We don't have them recorded, just signed as another layer of protection. 

It seems like I need to check further away from the DMV area.My feelings are if you want “cash flow” you should buy a bond (I really like the tips rate right now) there is next to no reason to buy real estate for cash flow, if you are going to buy you should buy with appreciation in mind, which is not to say that’s the route I’d go, I’ve been liquidating properties to put in stocks and money market funds over the last few years and u just did the math and I’ve come out well ahead, but just to say there are arguments for stocks/bonds, there are arguments for levered appreciation, but the cap rates pretty much anywhere aren’t worth it vs an inflation protected bond, especially since a 3/rd of inflation is real estate anywhere, you could get “cash flow” and inflation protection much easier through a tips.

Whether they have personal property protection, and how much, should be left up them.

This just protects our investment until probate is finished.Get creative with your offers you never know what will interest a seller.Have a conversation and find out their needs if you can before making offers.

Consider structuring your investment through an LLC for liability protection and tax flexibility.This post does not create a CPA-Client relationship.

.- You will have to come out of pocket for the arears, fees etc, just to get into "contract" some times $20k or more and all you have as protection is the word of someone who's proven to be unreliable and a signed piece of paper... 

A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings.