CF is tough due to a lot of supply, cost to purchase properties, and increasing restrictions from the city government. 

Most on BP have no clue about real property, we never talk about the social aspects of a home, never talk about what housing means to the community, the tax revenue generated, the amenities government provides, the security that shelter provides or any of the basic needs we reap from a residence. 

Daniel Ebling Employees = full control, more government regulations, reporting.

How safe is property won from a Surplus auction (city vs state vs federal)?

Payroll tax, insurance, workmen's comp, injuries, laws governing your actions, mileage etc...If you don't want to pay a full time or part time employee and take on all of the headache's that come with employees, why not consider outsourcing all maintenance to one local contractor.  

They are typically backed by funding from a government organization such as the city or county.

@Dong Yan I would base the LLC in my home state for ease of taxes/government forms.  

It didn't get us any federal tax breaks, but it qualified for the Virginia tax deduction.

Also, government recording fees are not charged because it's a government agency, correct?

Another issue I see coming with airbnb is that government and hotels will pressure to add more taxes and make it less lucrative.