If you decide to invest I would encourage you to check out North Carolina.

However, a simple security system would deter this.Personal Safety -  I assume you are using their ID to run a background check and deciding if their history affects your safety, correct?

I would first suggest deciding your budget and strategy.

For example I know many who are now just lending because they are getting 10-12% short term which is far better than any cap rate on real estate. you do not have the equity upside as you do real estate but its a way to play the short game to see what happens over the next 12-24 months and decide when you want to buy.

If the water bill is $100 a month, increase the price by 20% (or whatever you decide is fair) to compensate you for the time required to split and bill and to cover additional use when tenants squander the utility.

We like the approach of helping people to create good notes that we would be interested in buying if they decide to sell. 

Managing property can either be a lot of work or fairly hands-off—it largely depends on the property’s condition and how well you screen potential tenants.As for deciding between the two property types, it really comes down to your long-term goals.

I'm an agent and investor in Phoenix so would love to get on a call and discuss how I decided on becoming an agent and give you any insight into the local market!

The short version is that you must have a  Private Placement Memorandum (PPM) to show your investors and you must decide upfront if you will only accept accredited investors or if you will allow investment from non-accredited investors.  

Remembering that conversation, I decided to reach out to him.