It's just a matter of pooling people who are willing to take a risk.

If you're in the short game trying to capitalize on market fluctuations or appreciation, the risk is that you might buy at the top of the market and get stuck overpaying with few exit options.if you're playing the (really) long game, then it matters much less.

I realize that as the leases roll over I can change the terms so that the tenant pays for the water, but am wondering how high the risk factor is in the meantime.

Will the buyer pay me on the spot will i be wired the money is there an attorney that has to be involved or a third party to finalize the contracts in anyway? 

I'd want the property all to myself and not involve a partner, unless your partner is a super awesome person.

If I go OOS, I make the same money with my 50k but have the risk of flying there and staying on a hotel to fix an issue, fly+hotel will probably cost me 600, which will wipe out one month's rent, if you are handy and the MF is in LA, if a water heater breaks, you can go HD and buy parts, replace it yourself -- if it's in AZ, you pay someone to do it, maybe 200-300 more at least, that's half the rent.

Hey everyone,        I am beginning to look into accumulating off-market deals in my marketplace, however after several sessions of "driving for dollars" I cannot help but think there is a better method to this niche ...

.) -- it was well worth the price since I am 100% committed to getting involved in REI.

Oral agreements don't hold up in court.If you try to lock it up without being able to see the inside it's a big risk unless you have buyers willing to take it on.

How i fixed the house: Basically the realtor gave me the keys and said fix it at your own risk.