I was wondering if anybody had some area specific issues to keep an eye for and what are the BIG problems to avoid.

But they put on things specific to the foreclosure being done property like the power of attorney for the foreclosing company to act for the bank owner. 

Don't know this specific "mentor" but I would typically advise to steer away from them.

@Michael Moreno When it comes to self directed accounts that allow for alternative asset investing (not all do) it is important to be aware of prohibited transactions and disqualified persons. 

Just posted yesterday some more specifics where new construction is starting to creep in.

However, an essential exception emerged in the 1990s, allowing specific rental income to be categorized as non-passive.

There's now a competing bill in Colorado about property taxation of short-term rentals. 
The original bill, talked about here, would quadruple the property taxes on any home operated as an STR for 90 days or more in ...

@Bryce Carroll,IRS doesn't agree with what specifically?

Absolutely not, but every investor should see the red flags and consider their alternatives before moving forward. 

Their situation was a little specific as they lived in and operated a business out of their home so they signed up for a NNN lease, and the property was dual zoned residential and commercial so we were able to maximize their value.