Meanwhile, Texas has a property tax rate that is double that of CA and no cap in the yearly increase.  

While $700 a month in negative cash flow hurts, Oakland has been experiencing double digit percentage rent increases over the last few years.

You then formalize the deal with a standard purchase contract then assign or double escrow to the end buyer.

Just make sure you make diligent efforts to re-rent, and under no circumstances can you be paid double rents.

I don't believe property managers need to be licensed in the state of CT unless they are also handling the leasing or sale of real estate, but you should double check with the department of consumer protection at www.ct.gov/dcp I am confused however by your question.

Everything flows through directly to your tax return (i.e. no double taxation)

Get an interest rated fixed in the 4's and a cap rate in the 8's.The cash from the down payment will go into the mid double digits instead of being 9 percent.

You then sell that contract for a fee or do a double close, typically to an investor who is looking to improve the property and either rent it out or resell for a profit. 

@Jay Hinrichs I ran the numbers with two scenarios:An investor has $40,000 down payment to either invest in 1 Class A property or 5 Class C Properties.1) The funds will be invested for 20 years.2) Class A property will double in value after 20 years to $400,0003) Class C properties will have ZERO appreciation and will be worth $200,000 after 20 years4) Class A property have better quality tenants and only have 40% operating expenses5) Class C properties have lower quality tenants have 50% operating expenses.I have given benefit of doubt to Class A property, but Class C properties still get better return.

We have had banks give us their list of homes for sale and we know they have them so we can then go to some of our buyers and once we get a buyer on the hook we then do a double close.