But this can lead to negative consequences in the future, such as fines, difficulties in selling and increased security risks.

My thoughts are on the difficulties of finding boots on the ground and out of state contractors among other key players when it comes to out of state REI.

How much skin in the game? 

The cheapest lender may be the cheapest for a reason and change terms down the road or have difficulties getting you to the closing table  

I have no idea of the difficulties to find financing as a Canadian, but I do know the difficulties of performing a successful BRRRR in San Diego at this time and consider it very challenging and on the edge of impossible.good luck

Navigating the financing nuances is where I'll need the greatest help, since there are 110 ways to skin the real estate purchasing cat, and none of them are totally clear to me (yet).

I'm having the same difficulty as you.  

Also, you are right about wanting to have a deposit from the tenant, so they have some skin in the game to take better care of your property.

Difficulty Selling Properties to Free Market again, NOT correct. most investors want sec 8 tenants in.

It should also make potential LP's more comfortable knowing you have considerable skin in the game plus the fact you are profiting from the merits of the actual deal at time of sale rather than collecting fees.