The cash flow is definitely good, but I wonder if you think the due diligence you conducted was adequate prior to your purchase or if maybe you got lucky. 

She seemed clean (the inside of her car was very clean; thanks bp for that tip) and her demeanor/response to my questions were adequate.  

So if the plan is to buy and hold, maybe not an issue, but to buy and build/rebuild and they plan on selling is a big issue as you cant get adequate title insurance.  

Is the property adequate to live in?  

Short Payoff Fraud Prevention Red FlagsRemain alert to the following flags, which may suggest short payoff fraud: Sudden borrower default, with no prior delinquency history, and the borrower cannot adequately explain the sudden default.

., not a law firm simply cranking out cookie cutter agreements).2) In my State, there is an $800 State filing fee that must be paid every year for each LLC when an In State LLC is utilized, or in nearly every other case, where an Out of State LLC is utilized.3) Very inexpensive Umbrella Insurance will most adequately address all of my realistic liability issues.4) Mandatory ongoing maintenance, record and reporting requirements are avoided for each LLC formed.This does not mean that LLCs are necessarily inappropriate vehicles for some individuals with a scale of operations and scope of liability that makes entity formation an effective and efficient liability limitation tool.

Keep adequate reserves on hand to ride out and invest during a potential downturn.

Initially, we believed we'd need about 65 rentals to adequately meet our needs and to allow us to hire maintenance help so that we were not just "buying a full time job" and we are still not quite there.

Those with adequate reserves are more concerned by total return and are less concerned about the source of the return.  

And have adequate Umbrella Insurance.