So it is essential to find the right team.

It would collect the income and pay the expenses. and pay tax on its net income. 15% on the first 50k of annual income. 25% on the next 25k and essentially 34% after that.

Hi @James Lynch,As long as you did the 1031 properly and followed all of the rules, if I read this right - essentially you received $400K of profit from your sale, and then bought two additional properties for $400K.

The barrier to entry that is referred to is essentially non existent in Joel's model.

Also, be careful buying these in managed communities where they are essentially like condos.

You essentially just buy the property and wait for the checks to come in.NOTE: Be verrrrry careful about who you decide to do business with, and be sure to do your due diligence.

So, essentially I'm and accidental bird dog. 

There's a psychological element to it.

In fact, I've done what is essentially this same deal as posted.The fee title needs to be transferred so asset is no longer part of the estate and in your control. 

House prices though and price patterns is however an element/variable that just about any government is able to influence and control -- if they feel like it.