It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.Make sure your property manager is a licensed real estate brokerage.Understand you can not eliminate all risk, only mitigate it.

In one deal referenced the poster highlights a major potential conflict of interest as Capella supposedly used an appraisal generated by the borrowers without disclosing this to investors, who later invested $3.9M to finish a luxury home Capella claimed was 80% complete.

Many of these "gurus" claim you buy Class D properties and through the "miracle" of S8 rents - make them cashflow.Rarely happens!

It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.Make sure your property manager is a licensed real estate brokerage.Google Clayton Morris and/or Morris Invest for a cautionary tale of what not to do when buying turnkey real estateUnderstand you can not eliminate all risk, only mitigate it.

Where people went cheap with online brokers, many of those companies just did not have the resources or expertise is seemed in many instances to handle claims. 

Laws are now passed that prevent you from renting to yourself and claiming all the losses.

These risks can happen to anybody no matter the type of investment they make like your investment house can blow up and insurance doesn't accept your claim, you could get hit by a bus, and boom no money, and so on. 

This guy claimed to have hundreds of homes which was a complete lie and then drives idiots around the Philadelphia hood in a party bus for thousands of dollars. 

It might help you avoid penalties if the IRS goes after you later.You can claim the labor expenses even without 1099s, but you will technically be in non-compliance.

My second suggestion is to change how divorce attorneys get compensated, which would be for the results and not how many billable hours they can rack up by making things more complicated and hostile than they need to be.That's all I had in terms of unrealistic ideas for today..