@Ming Lim, @Chris SomervilleIf you are dropping off door knockers or letters with the intention of purchasing properties for yourself, there are no legal issues ... even if the property is under an agency agreement with a realtor (the owner would just redirect you to the realtor).If you are canvassing for properties with the intention of finding a buyer other than yourself, then you are wandering into the grey area of wholesaling versus agency (which requires a licence).

@Rao Mu, What you are talking about are equity deals, versus the debt deals that you see on POL.  

What are the primary differences between the auctions you speak of versus the court house steps type auctions?  

@Megan Spargo my experience fits what @Soh Tanaka said- Tell your insurance company because (mine told me) they will likely not cover anything that happens under the wrong kind of policy (owner occupied versus renter occupied, for example).

I guess it comes down to your strategy and tolerance for leverage versus need for cash. 

I am ready to pull the trigger (not withstanding the philosophical discussion of turnkey versus not, I have decided to atleast start with one turnkey out of state and see how it pans out) but am being constrained by lack of inventory.

Also know that you can't leverage as much with IRA funds versus if you are using personal funds.

You have low property taxes, low rents, high cap rates to compress, utility expenses were manageable,etc.These days cap rates are low for the good areas, most rent growth has already happened, counties and cities are out like crazy raising property taxes and even if you appeal and win they still go up some, and utility companies like water even with no leaks are raising the water and sewer per gallon usage rates because they kept flat in the down turn.If you add all of these things up for the yield versus more passive commercial assets I do not like multifamily at this point in the cycle as much as I did 4 to 5 years ago. 

There are spirited debates on BP all the time about self versus 3rd party management and many members do not feel it's possible to make proper returns using 3rd party management in SFR REI (and that opinion is not due to the management fee).  

If your property is in Huntington Beach, and you don't have a ton of equity, I'd wager your property isn't insured for anything close the the loan value.