Depending on who you ask, they can either be loser investments or stable B/C class cashflow generators and good homes to solid, blue collar tenants.

It doesn’t matter if month to month, yearly leases, or anything else.From what I understand, in some blue states, they MAY let the tenant stay despite non-payment.  

Investment Info:Small multi-family (2-4 units) buy & hold investment in Blue Mound.

This is a somewhat low income blue collar working town.  

Here are some of the details:16 units - 2 bldngs, 8 units eaC class buildings, 80's construction, needs exterior and interior cosmetic renovationSome deferred maintenance but nothing structuralUnder market rentsStable, solid middle class/blue collar secondary marketOut of state owner, property mismanaged by "on site mgr" who lives in one of the units

And if the tenant had money in the first place they probably wouldn't have bailed out of the blue.  

Every state has their own state specific SEC rules (called "Blue Sky").

Instead of a 4-plex, start thinking just a little differently.My biggest success over the years came from buying GROUPS (5-8 houses) of older homes on a single parcel, in older, blue collar parts of town (not slums).

It wasn't pink or blue or other 70's colors, but it didn't really yell "I'm a modern bathroom!"

The reasoning there is that the properties are primarily nice blue collar to middle class.