They are not secured investments and you have very little protection outside of out right fraud laws.

Investors aren’t acquiring fractional property ownership but are instead buying income rights, meaning the arrangement avoids triggering real estate co-ownership laws or property title issues. 

You will want to know your state laws regarding deficiency judgments, and whether your deficiency will survive the DIL. 

Our property is in the Bay Area, which is known for having more tenant-friendly laws.

Also, something the state though is looking to make a law on now though.

I also know of several law firms who have not been paid in over a year then will not work for them any longer.  

They usually cherry-pick fire and safety related items from new editions of the building code that just can't wait, in their opinion.

The law here says eviction is a public interest issue (of course it is!!!) 

This could be a huge opportunity for investors who can find cheap conversions (think: a SF with an existing in law apartment).

* What do you do to ensure that the tenant is responsible for security deposit disputes since that is the largest reason for owner lawsuits* How familiar are you with the newly changed laws that can affect you the owner if they are not used correctly?