The  intangibles from there would be plumbing broke loose that needs to be redone...another permit.

My husband does appliance/plumbing/boiler/electrical repairs, turns apartments, does inspections, deals with contractors, and troubleshoots on a regular basis.

. - high construction cost due to earthquakes and local regulations keep supply and density of housing low.- loans esp. jumbo,commercial, and HML are cheaper in CA due to competition (3% 5yARM w/25y amortization in hot metros matching the low 2-3% cap rates!)

The biggest things are- can they pay, do they understand the rules and regulations and will they comply, the rental history etc.

Let's start with googling syndication, ppm and regulation D. 

They keep a lot of loans in their own portfolio so they don't have to always conform to Fannie/Freddie regulations.

Some of the most significant regulations the IRS has come down with recently deal with this, it's an issue they are focusing on.  

He pretty much took care of everything minus major electrical or major plumbing.

They are now regulated more so than in the past and the penalties for violating the regs are severe, but L/O's were never made illegal.

@Jamie Montpellier There were folks here who thought we should adopt similar regulation.