If they choose to stop paying rent later they are held accountable for that.

That's aside from a renter placement fee (from a property manager or real estate broker), so with that into account, it could be about $3000 into the red on year one of a rental lease.

Class D risks > Class C > Class B > Class A, but how many investors even know what those risks are, let alone know how to account for them in their ROI calculations?

He determined the price and terms for the property, and according to the agents involved, he consulted with accountants and attorneys before signing the contract.

@Greg StrunakA good real estate accountant can save you thousands of dollars by leveraging entity selection and formation, tax deductions, cost segregations, bonus depreciation and tax planning.I recommend finding an accountant who specializes in real estate taxation, business taxation, financial planning and tax planning.You may want to consider working with your accountant remotely to expand your options.I would also recommend looking for a accountant willing to work with you throughout the year.

This is a good way to see old photos, bedroom accounts, utilities, etc.. they may also be able to help u check if it's in a flood zone.

Sell the home to whoever your target tenant will be - modern, sleek, urban, renovated, bright/spacious; then sell the location - not whether they have a bank account or need a 7/11 - just that it is located to 'dining, entertainment, shopping, more.' 

There are some accountants out there who say that the very act of doing a 1031 exchange is an attempt to avoid tax and so a 1031 purchase from a related party is a non-starter. 

You can still get positive cash flow even accounting for a PM - tons of my clients do as well!

I actually recently met a real estate agent who I've become friends with and will be helping him with some of his properties to get some first hand experience.