I would say that the extent of the issue depends on a variety of factors but the number one factor is the type of foundation.

That is a myth.Low class folks come from a variety of socieoeconomic backgrounds; fortunately, they don't typically rent vacation homes.  

As mentioned, check your local laws.You most likely can take the security deposit as most jurisdictions allow for the taking of security deposits to cover a variety of debts owed to the landlord, including unpaid rent. 

Any renter can stop making payments for a variety of reasons, so that's no more likely. 

I think I need to explain it in a fresh thread because of my variety of typos above, but here's the basic idea.It is not actually true that the COC (Cash on Cash) is monotonically decreasing with increasing debt. 

CA laws are so strict so that you would have to pay CA LLC tax even if you run a OH LLC from CA.Personally, I think holding in local state LLC is the best, unless for tax reasons or you do not want to reveal your out-of-state location.  

But that could be for a variety of reasons.

The law is tricky to say the least and it's much better to ask someone who knows it well, then a variety of people who may have never looked at it.

Final good choice is look at the D/F areas of large cities.likely to produce great ROI: Look for growing cities with a variety of employment and constrained on land.easy to manage: look for either easy for you to get to or a city were you have friends/family that are willing to help.For me I would consider item #1 as not a great investment choice.  1% properties does not necessarily equate to producing a good long term ROI. 

This is a great way to connect with a variety of lenders as well as successful investor realtors as well as investor property managers.