I'm risk averse on factors I can't control, so I don't mess around with insufficient insurance!

And as this faux 'recovery' is merely a 'reinflated bubble' as par, it ultimately matters not whether the PTB (Powers That Be) are in near complete control of another 'controlled demolition?'

Repairs: 20-25KCurrent Rent: 550/month (2200 total)Vacancy: 220 (10%)CapEx: 176 (8%)Property Management: 242 (11%)Repairs/Maintenance: 330 (15%)Based on her estimates, Taxes: 125/monthInsurance: 125/ month Pest: 85/ monthCash Flow: 373.41COCROI: 9.53%As you can see I put in conservative numbers everywhere and when vacancy is adjusted to 5% and repairs to 10%, it hits the estimated marks given by the 50% rule with a 600 cashflow.

It all depends on the amount of time and the amount of control you'd like to have over a project.

You can not raise the rent higher than the local Rent Control Laws allow. 

Just understand what you can and cannot control being so far away.

Depending on what the layout of the building is, there is a good chance that smoke and water could have damaged much more than what is visible and sitting empty for that long can be difficult to for mold and pest reasons.If the damage only affected one or two units it may be easier to put at least a few of the lesser damaged ones into service quickly. 

Some communities charged different amounts for different reasons and can control more than you think. 

Compared to an IRA, Solo 401k contributions limits are roughly 10 times higher, there is no custodial requirement for the 401k, you can take participant loans, you don't need the additional expense and administration of an LLC to have checkbook control, there is a built in-Roth component, a spouse can participate in the same plan, there are additional tax benefits (UDFI exemption), and the plans are often quicker to setup and cost less money over time especially compared to most IRA LLCs.

We're seeing this happen more and more in non rent control communities throughout SoCal.