Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

How do you collect and is worth the time, effort and expense?

The Personal Mentoring program is geared to the folks desiring to be deal sponsors - a sponsor's job is to find a property and collect passives as potential investors.   

After collecting tenant pass-throughs for the year, do you pay the property taxes at the end of the year or the beginning of the next year?

It's not fool-proof, but I think odds of earning 7.5% using a barbell strategy in the average year on your money is 97% likely with very very little effort. 

They may not be able to use financing contingencies and may have to show proof of funds equal to the acquisition price but the money that hits the sellers bank account is the same whether its "cash" or a financed transaction. 

Second, you left out the fact that owners who don't/didn't clean up -- in Florida or elsewhere -- had their land cleaned up by the government (local ones too) and then the land was seized or liened if the owners/insurers dragged their collective feet.

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

Actually the IRS does not tell us what we can invest in, only what is disallowed (life insurance contracts and collectibles).Allowable investments for SDIRA investing include the following:Residential real estate, including: apartments, single family homes, and duplexesCommercial real estate Undeveloped or raw landREITs (Real Estate Investment Trusts)Real estate notes (mortgages and deeds of trusts)Promissory notes Private limited partnerships, limited liability companies, and C corporationsTax lien certificatesOil and gas investmentsPrivate stock offerings, private placementsJudgments/structured settlementsGold bullion Factoring investments

We are invested with a couple other operators as well as BAM, and I have to agree with Ivans position, its the tortoise vs. the hare....The overall proof is in the exit and I dont see that for a few years - but have been surprised before.