Also, if it is truly in a rough area, you may have a hard time with collections.  

So even though the cash flow is about the same the amount of capital needed is much higher.A lot of my clients are Doctors and they would rather own STNL with a single tenant and long term lease where they do not do anything but collect a check.

A limit here could have unintended consequences--such as a family who wanted to pool their money to invest in a deal run by another family member--they might be prohibited from accomplishing their collective objective if the regulation limited each family member's investment.

@Vanessa Lago - If the debt is collecting interest over 10%, I would pay that off immediately.

For example, if I rolled over $300k from the start, I would have those funds easily available for deals, but meanwhile it would be collecting dust while while I look for a deal, instead of appreciating in my 401k.

.- I don't mind taking it initially but, I don't want to have to collect cash down the line because I don't live near by.

If you collect $3000/mo then you can add at least $150(5%)/mo the following year.

You should purchase this insurance and collect from your tenant.The above ( taxes and insurance) should be paid in estimated monthly installments with a provision to allow you to bill them at the end of the year for adjustments such as an increase in insurance or taxes.

We are collectively purchasing under a newly formed LLC.

As an owner, you will be responsible for the roof, siding, etc. through an assessment fees.Assessment fees are payments the homeowners' association (HOA) collects from owners to cover expenses the HOA is responsible for, but that aren't covered in the regular monthly fees.