I think the 1% rules best value may be to protect less experienced investors from overpaying for a rental Income producing property.

Without complete financials up to that point, extra work (and headache) will be required to get everything straight after years of failure to keep complete financials.There also might be an asset protection wrinkle by not maintaining complete books for an LLC, but I won't comment on that as I'm not an attorney.

We use a custom lease that has evolved over more than a decade to protect us and the property owners.

The Right must resist the urge to demand suspending environmental protections and necessary building codes.

Get an attorney ASAP, not just to protect your own interests but to get ahead of others in the same boat who may be considering the same thing.

So even if the cash flow is only 3% or 4% cash on cash, that’s enough to provide a protective layer to cover unexpected items.To me, the cash flow is NOT to put spendable cash in my pocket NOW but rather keep the property self supporting while it increases in value over the long term.In addition, every property a purchase has a cash reserve fund - call it my rainy day fund or my Sominex account (ie I can sleep at night knowing if the furnace goes out I have $8,000 in my reserve fund to replace it.)One final note, I have found once one reaches a certain net worth, cash flow no longer is a concern, there is always as much cash flow as anyone wants.Final note, who will have more cash flow someone with $1M investible cash or $3M investible cash?

You need to know how to enter the deal and how to exit so you can cover your areas and protect yourself from losing money. 

Find somebody who doesn't just have experience but who has a strategy to protect the downside.

Florida homesteads have no cap on the asset protection (I don't know Utah's laws), so for folks like surgeons, I would set them up with an equity line rather than a first mortgage.

As a bulk-delivery service, we have to protect the deliverability of all our customers.