@Kevin Cross try code enforcement, the city loves that sweet code violation money and it provides a strong incentive for the owner and/or occupant to get things into shape.

As an example, I have a $200K LOC that is cross-collateralized by 2 SFR's.

I don't think starting a REIT is where you are yet, so we can probably cross that one off the list.

It definitely is hard sometimes to make sure you're absolutely crossing all your t's and dotting all your i's.

As you can read above I have been ahead of the curve on this issue vs 98% of persons in the industry, formulating solutions and actions to be proactive vs reactive, I don't get scared I get to work and really that's the choice we have in life, climb up on a cross and cry or build a bridge with the wood and get over it.

Bendana- You should cross-check any comps an agent gives you by pulling comps from a title agency. 

(Fingers crossed)My realtor is experienced with multi-family investments. 

The locations I am scoping out are areas bordering the “heavily competitive” Bay Area markets, which has been proven rather difficult; (Suggestions welcome).

And especially if you coming from the west coast  IE CA OR WA were tax's are the same for owner and investor.. so it does not even cross your mind that there is such a thing as a homeowner exemption.  

Unfortunately, you need to learn with tenants, you let them cross the line on stuff, it never gets better until you put your foot down.If they were Sec 8, did their case-worker know the tenant is supposed to pay for utilities?