It's even more suspecious when there is no management team and actual employees working for that out-of-state company in the state where the company is filed.At least two California real estate attornies have confirmed the above strategy, so I really want to know how this whole thing works properly without any risk on the investor's end.

@Jason Malabute It sounds like you don’t want to give them solutions and want them to figure solutions out on their own, but your title suggests that they will fail without you but I don’t believe that was your intention.I’m reading a book called “The Four Hour Workweek”, and there’s a section that talks about not allowing employees to get used to reaching you for things that aren’t emergencies.  

@Manny K.Ah yeah that makes it tough.

From my limited rental knowledge (only have one rental ATM) it seems like 2500-3000 is a tough sell unless its near great schools and jobs.

Cash flow in any of the cities mentioned will be tough in the current market.

And there are a few that followed this advice 5 to 7 years ago that were on BP who did exactly that in Indy and they have had good experiences and since there is a mix of owner occ and rental the properties have actually gone up a decent amount.. this leaves you two exits investor or owner occ.. where OOS investors can get stung is when the ONLY exit is to an investor.. the locals beat you up on price and unless you have a high financed OOS marketing company selling them for you ( and non will take on one offs) it can be a tough exit or at least at a price you would be happy with.in these areas on the MF if you can stick to 1000 a door or higher that will mitigate some tenant issues as well.Good luck.. 

When I ran a flight kitchen overseas, we had crusts, cheese, sauce, toppings, etc and employees to get the pizzas done but we were also focused on getting a large variety of foods out, not just pizza, but I digress.What I’m trying to understand is the mathematical language.  

The tenant could also claim they were acting as an employee.

If you are trying to buy investment property on the MLS (retail market) in an extreeme sellers market it will be tough and you are probably setting up to fail.

@Joseph Hummel agreed, got that sense too but it was tough to gauge since there was limited communication, the appraisal was done couple months ago, hopefully they won't want another one, my original application actually expired and they gave me a better rate, if I need a new rate it's gonna be higher hoping that won't be the case!