I would also recommend increasing your liability coverage to at least $2M.

Increased housing inventory as new developments hit the market.2.

However, investing locally has become increasingly unfeasible and unrealistic due to the high costs.

I would be cautious buying in the saturated areas because there are so many similarly sized properties that price is becoming increasingly the deciding factor. 

.- Over a 10 year period cashflow will increase as rents increase (rents typically rise faster than property taxes, insurance, etc.)- The property should be appreciating, if purchased in a good location, increasing the owner's equity/wealth.- Rents will be paying the mortgage off, increasing the owner's equity/wealth.- If you hold a rental until death, you can pass it on with a stepped-up cost basis, limiting captial gains if then sold (limited by inheritance tax limitations).Too many newbies on this site trying to replace their day job income via "passive" real estate investing w/o digging deep enough to understand how it really works.

@Chungying ChuIf you want more liability coverage, ask your insurance company if you can increase it.

As for the property structure, using an LLC offers liability protection, while a land trust provides privacy.

Quote from @Paul Lucenti: Creative methods tend to increase risk.

Kind of reminds me of the old ranch style, with a bit more privacy and access.

As long  the tenants pay the rent each month, increasing their rent will be very tough and getting them to leave will be extremely tough.