The 4% is an average, if you're an observant investor it should be no problem to beat that average.

The court cited corporate veil-piercing cases and set forth the following factors considered in a corporate veil-piercing case: insufficient capitalization, non-observance of corporate formalities, nonpayment of dividends, insolvency of the corporation at the time of the litigated transactions, siphoning of corporate funds by dominant shareholders, non-functioning officers and directors other than shareholders, absence of corporate records, use of the corporation for transactions of dominant shareholders, and use of the corporation in promoting fraud.

That's an excellent observation.

It (the LLC) is a business and if I need to foreclose I don't have to observe a boat load of new regulations (new state statutes) that may severly complicate the foreclosure process.

As you've observed, what you get for a specific costs varies widely between areas.When you buy, you are either "renting money" by getting a mortgage or giving up potential returns if you pay cash.

But what I have observed correlates with a lot of the comments here.

This is my observation of large apartment complexes.

I have found infestations by observing only a quarter inch mud tube (all that was visible at that house).Now my advice: Make any purchase contingent on a wood destroying insect inspection and hire a professional and accompany him/her during the inspection.

This plan will create wealth for them even if we have no appreciation in value as long as rental income keeps up with real estate taxes.John, having said all this I appreciate your observations and would be very interesting in hearing about your failure in this type of market.

These are my comments and observations and are for entertainment only, not an endorsement for or against any parties.