Although the study may increase the gain, the gain may be taxed at a much lower rate making it a beneficial investment.If a property is purchased with the intention to flip or own for a short period of time (less than 3 years), a cost segregation study may not be significant.Overall, as long as you intend to hold the investment property for greater than a year, the benefits of a cost segregation study should be considered.

Business owners won't want to get tied up in litigation and if there is a good chance they will lose, it is easier to simply follow the contract.How would that work with a lower-end tenant? 

I believe it tends to give me a slightly lower return, because the sponsor is going to be more careful, and if there is a severe downturn will prevent me from taking catastrophic losses.

Also, they can penetrate neighbors' walls easier.  12 Gauges are just a lot scarier, more accurate within 10 to 20 yards- especially during times of stress, do more damage, plus less impact to neighbors.Will re-post some insurance and fire posts I already did for LA fires. 

I might put 2 o 3 properties per LLC to lower the amount of LLCs and fees.Question: Why is preferred to use a warranty deed, instead of a quit claim deed?

Appraisers are using MLS data and often it is lower than actual rents. 

The contributions are lower so it takes a while to build, but once you do, it's tax-free investing. 

Typically, higher income areas have lower crime, more amenities, better schools.  

You get PM experience, lower expenses, you don't live with your parents anymore, etc.. 

G'Day Alejandro,As a few have already mentioned, take a peak at Toledo also.In my opinion lower potential for long term appreciation but solid/"boring" cashflow.I prefer my portfolio to be "boring" but cashflowing lolLow entry points (Sub $100,000), high rents (Above the 1% rule).Blue collar working class decent folks that will stay and pay.Depending on the area but no derelict homes, yards well kept, cars with wheels and all tenants are employed.Plus, all are sophisticated enough to pay rent online so property management doesn't have to collect rents with bullet proof vests and shot guns lolI'm bias toward Toledo but it's worth considering.Wishing you much success