You'll also want to ensure you have a good property manager to look after the upkeep of the property if you are not there to notice anything deteriorating or which may need attention.Creating an LLC in California could cost you a minimum tax of $800 every year.

But it still created trouble in the past when some tenants wanted to leave earlier due to a deteriorating relationship.  

Are the neighborhoods deteriorating? 

Also areas where you have trusted family and friends that can give some feedback on local growth areas, areas that might be deteriorating or areas that are development embattled.

@Ray HageI agree as I would stay away from condos as between special assessments and increase of fees, what is the risk vs reward.Many of these buildings are run by people who are not property managers or have development experience and lack the knowledge to properly run the propertyAlso many don’t realize that on older buildings your initial estimate will be 30-50% less once the work starts, especially on older concrete buildings that are susceptible to deterioration due to the weather in these areas (especially the salt)

But, if repairs come up and they don't have the money to fix them, if they put a bad tenant in that does a lot of damage, or in general, if the neighborhood starts deteriorating, it could turn into a bad investment.These are all things to think about with any real estate investment.

Things are going to deteriorate.

Normal wear and tear refers to deterioration over time from ordinary use, but damage like a large oil stain in the driveway from a vehicle is preventable and would fall under tenant responsibility.

Investor Consequences: Deferred Maintenance: Reduced rental income might force some investors to cut back on repairs, leading to property deterioration over time.

I still (strongly) believe that supply will pick up in the spring once STR owners are disappointed with 2021 holiday figures, deteriorating property values on the mountain.