If you have a lot of time at your disposal – it would be worth it to try and build a team and find boots on the ground.

An angle to take to combat this situation would be to quit claims the home into your personal name for the refinance and quit claims back into the LLC.

The key is to establish the market you want to be in, understand the market as best you can and find people you trust to provide your boots on the ground support. 

It really takes having boots on the ground to find good areas.  

The only way you combat the risk is by costing it into your max bid price. 

$2000 is what most people, myself included, charge just for a Home Study Course and Boot Camp.

Any amount of profit you take  (outside of the Sec 121 excluded amount) is considered boot and is taxable.

The conversations I've had with him at Meetups are incredibly valuable and he's pretty smart to boot.  

Account Closed   most people with that kind of capital go the other way... the more you have the lower the cap rate because its about equity protection as opposed to making as much as you can and then taking on the risk of losing capital which your doing when you go north of 10% caps. in the SFR game.If you want that kind of return the safest and best place is to hook up with a REALLY good HML and make your 10 to 12%  with a very good amount of security and equity protection and passive to boot.

Do the work so that you will know the game, maybe get a partner in the area for your first deal, maybe even first few, that knows the area so you have trusted boots on the ground.We do sell distressed properties to investors, most of the rest will be on you, if you would like you can PM me or call me, my number is in my profile and at the bottom of every post.