That is just not realistic in this current market.So in my opinion it's important to expose yourself to a large number of deals, so you can develop an intuitive sense of what's reasonable and what's not (and quickly discard the ones that aren't).And it's true that there is no way to 100% protect from fraud (and not just in passive real estate investments but even in public stocks etc.).

Quote from @Miguel Del Mazo: Knowing more about the area, it sounds like you'll have an ideal avatar of wealthy, young and trendy professionals that aren't ready for or looking for a home to own.

There are only 3 reviews on their website which are all extremely generic and I think aren't real.  

If you have to pick a side, it's usually best to side with those who aren't breaking the law.

Yes, you personally aren't living there, but with high crime comes unqualified tenants and high maintenance costs (stolen materials, broken windows, etc.).

Finding a reliable contractor for the rehab portion and then a good property manager once it's rented seem to be the biggest issues for those who aren't local. 

We both know the numbers you used (mostly that 1000% return number) aren't practical, but humoring them paints an interesting picture about the financial advantage of leverage.

Damn brother, when ya'll sell BP to Facebook I think you've got a future as a travel author.

Thank you in advance for any help One thing I've seen with policies through NREIG is that investors have basic perils/actual cash value coverage only and aren't aware. 

But the rental too does have to meet the "active conduct of a trade or business" threshold, which does mean you wouldn't qualify to use section 179 if you have a rental that is managed entirely by someone else and you aren't at least overseeing it and making decisions about the management of it.I mostly disagree with the reply suggesting that you need to have an LLC to take the section 179 deduction.