Get the timing wrong and you are looking at a downturn and loss of capital, at least on paper.Adding value is key to giving yourself the best possible opportunity of your investment making you money.

In my mind, risk involves possible loss of principal, down-side involves the hassle of work that I will need to do to to protect investment.

Structural & functional items usually need permitting (framing, roof, electrical, plumbing, etc), whereas flooring and landscaping do not. 

So long as the gains outweigh the losses it's all good in my book.

You also ought to see what the itemized bill is, so you know the appraisal secretly doesn't cost $2k and the HML is charging a $3k management fee.

Hi Chihero,Don't forget the SEC requires the PPM to have a "Prior Performance in Raising Funds Table" and an "Operating Results of Prior Programs" table that all investors must be given.Also the SEC assumes Accredited Investors can handle losses if they occur and Sophisticated Investors can asses the risk for themselves.These opportunities are not open to the "General Public" for those reasons.

Just make sure you know how much life your water heater and HVAC have left and that you’ll have the cash or a home warranty to replace those items when they go.

Also without statements how do you go about properly claiming items such as interest deduction / property taxes etc when its time to file taxes?

If it's anything but easy, it's your PM that is the problem.4) Along the lines of item 1) above.

A list of the paperwork and miscellaneous items needed between the seller and myself.