Tenant turnover is minimal and, if the need arises, we can easily compete by offering rent with utilities included.Improving the envelope should have been done before installing the heat pump ... now you are just more efficiently heating he neighbourhood ;-)

HI V.G,In relation to your question about the Operating Company needing to be from the State where it manages property, the response depends on whether the level of activity of the LLC arises to the level that the entity is considered doing business in the State.

Another problem that may arise with such a transaction is that the partners holding the distributed property as tenants in common may be deemed to enter into a new partnership.

You need to be prepared for problems to arise and they need to be fixed ASAP.

But a rising tide of appreciation can overcome the effects of negative leverage if you are comparing your cost of capital just to the cash flows from the property while in your possession. 

However, our preference is to go the route you have if the oppertunity arises!

Good thing about this method is its getting a lot colder out and thats the time when a lot of problems and headaches arise for investors, so allows you to provide that solution to their problem by providing an offer on their property.  

With a probate, unlike a lot of other issues that  arise (Lose of job, Bankruptcy, Etc. ) Someone has left this earth.

I won back all of my security deposit, plus my expenses pursuing it.Also, I would prefer to have a tenant that cares about where they live and will bring to my attention needs as they arise, than a silent one that doesn't tell you of a building defect and it causes more damage or an unsafe situation.Be thorough in your tenant screening, make a decision and move forward.

As an out of state investor the problems are multiplied and they will get out of hand if you don't have a process to deal problems as they arise.