Even trusting a brand new GC who's licensed/"qualified" is a risk from out of state, let alone out of country.

We do this by risking 1%-3% capital per trade because of 10% occasional drawdown that will come with that, mind you. 

Here are five dangerous provisions to watch for in an Operating Agreement:Dangerous Provisions to Watch:Authority to incur debt without investor approvalPower to make loans to other entities/projectsAbility to cross-collateralize with other propertiesPermission to use investor capital for other venturesCommingling of funds across different projectsWhy These Are Potential Ponzi Indicators:• New investor funds could be used to pay existing investors• Project-to-project lending can mask poor performance• Cross-collateralization puts your investment at risk for others' failures• Commingling enables masking of financial problems• Lack of project segregation enables fraudulent schemesProtective Measures to Look For:Strict single-purpose entity requirementsProject-specific bank accountsDebt limitations and investor approval requirementsProhibited related-party lendingClear fund segregation requirementsProfessional Best Practice:Request bank statements showing separate accounts for each project.

That's one of our biggest risks it seems, however, ND is more friendly than the MN side.  

But now you have a challenge of documenting both your time AND time of everybody else involved with the property.Now, to answer your question - is it possible from out of state?

.: One of the interesting things that occurred in the legal landscape was that in 1978, California's Supreme Court ruled that due on sale clauses in mortgage documents were void "restraints on alienation" and unenforceable unless a lender could show their security was at risk.

In fact, approximately 40% of our business involves the Section 8 program.40%...

Speak with lenders - and consider that although they might agree they could lend to you today - they might not be able to when you need the loan.Unless the existing debt has no due-on-sale provision, there will always be a risk of the underlying loan being called.If it were to be called due:1.

In the Bigger Pockets free book, "Real Estate Rewind", as one of the 11 co-authors I wrote about one such Tax Sale purchase and made money but not enough money to warrant the risk involved.

Is it worth it to go through the proper process with the city and run the risk of a huge expense to make this a 3rd unit?