Neighborhoods in Trenton can be drastically different from block to block.

This property is located within one block of a local state university where I believe that I could get more than $500/unit but am trying to be conservative.       

A friend who bought a house from me had lenders deny his loan for reasons like, we don't lend in that area, we don't lend on blocks where there are boarded up houses, we don't make loans that small, etc.

Being the 3rd floor and I assume attic access, it won't be all the difficult, just a pain in the rump working up there and running/separating the lines.  

Within several blocks there are houses that are rented to very poor people or Section 8.  

I bought the house for $233k, and the comparable home down the street from mine was recently sold for $360k, so I assume my property has already appreciated as it was the worst house on the block, dragging everyone else's values down.

When you go this route the custodian is holding all IRA assets and all transactions must go through them, which can be a pain.

@Chris Parrish knows my pain :)How do you make sure your escalator clause isn't manipulated though?

Once you get into declaring assets and doing the 'balance sheet per books' and the capital outlays of each member, tax time gets to be a royal pain and/or expensive.In CA, you'll also have the $800 annual fee per LLC to deal with as well, of course.You'll need more thorough advice than a vague tax book here.  

The biggest road blocks for me, seem to be the best way to find properties(Or what works for you) and ways to obtain financing on properties off the MLS.