They may wish to keep their personal name private from the other investors, etc.One potential downside to investing in an LLC (and that I've seen has cause people to change their minds and switch) is that the tax filing deadline is a month earlier for LLCs versus individuals. 

Calgary HAD the biggest appreciation. 

Only downside is keeping the PMI on the loan which really in minimal cost.

The battery and molestation charges are, of course, the biggest concern to me.

I'm in Canada where tuition is different (not as expensive as the US), but the biggest expense I see is what students pay for housing and food, not their tuition (US is likely different).Real estate investing is not passive and not something you can live off.

Probably the biggest challenges I see are housekeeping and if you need PM, that could be a challenge.

I'm trying to plan this out as well as possible to avoid any issues down the road.I've seen the stories where people run into issues meeting this requirement and get scrutiny from the IRS, to me it seems the two biggest red flags might be when they hire a property manager and also when they rarely go out to the property to work on it themselves, always relying on contractors.

I have seen the good and the bad, I have watched some of the biggest names here in Indy get started and have helped most of them in some form or fashion. 

Biggest thing is adjust pricing appropriately. 

For out-of-state investing, one of the biggest tips is building a solid local team—an agent, contractor, and property manager you can trust is key.