In one town near me they require a rating of 3-A: 40-B:C, so I just use that type everywhere now (other areas likely to copycat, and the few extra dollars upfront aren't going to kill me).GFCI in all areas where water can be normally found; bathroom, kitchen, laundry, garage, all outdoor outlets, etc.AFCI in bedrooms (mandatory by code in some areas).Address numbers on the house that contrast with the background (how will 911 find you otherwise).All bedrooms MUST have a window that goes to outside and is sized to allow for a person to escape.Locksets - no double-keyed deadbolts, where a key is needed on the inside as well as the outside (I only use those locks during rehab, where nobody is supposed to be sleeping).Railings and handrails.Identify the water shut-off valve by the water meter so that the tenants know how to shut off water in an emergency.That's all I remember off the top of my head ...

All I know is that Guidant (and the attorney they hired for me) told me everything I was doing was fine, and they'd occasionally send me some documents that they said were very important and that I must keep them with my plan documents to avoid running afoul of the IRS.I didn't feel like I had enough information or control to be making an informed decision about whether what I was doing was legal or not, so I erred on the side of caution.Ultimately, the IRS officially determined that everything Guidant and I did was legal.

Also if you could find the volume of deals needed you may end up paying more in payroll as you are ramping up your work force and dealing with the associated headaches.

If the penalty is small (1/12th of a fixed limit) the stick is not big enough to force them to throw a ton of manpower at it.

But most of all is investor demand.

Insurance will cover liability, bankruptcy is unlikely to force sale on a half interest, besides the homestead exemptions for a primary residence.

Rather than being forced out of her home she was then able to rent it at a profit and Changed her employment which was going no where to a job managing a hunting lodge that included room and board, for her family.

Jon & Joel, I appreciate your insights.Joel, I question including management costs into the NOI, because that is a choice I make - not one the sale itself forces me to make.

In my area, you cannot force a tenant to get renter's insurance.

I've got two friends doing it and I help them out all I can with advice.