It's not enough to know that over the next 5 years, your purchase of an investment is likely to generate say, one and a half million dollars in actual net cash flow.You also want to know: how much will that asset be worth (vs now)?

But if you have a mean neighbor or a guest throws a beer can on someone elses lawn then your operation could get shut down and they will fine you.

Make sure you are operating within the law.

2) Just live off of net cash flow that the paid off properties are generating each month?

Is she a one woman operation or a company? 

Add the operating expenses and deduct from 'income' to check the cash flow. 

I generally like to see rents of $900 to $1,000 and above, but that can be market dependent.Visit the area and the provider you are considering - there is nothing like a face to face, seeing the neighborhoods, the quality of the rehabs, and the operations of the provider.Fully vet the property management - nothing is more important than the PM in the long term success of your rentals.There's more, but those are some keys to look out for.All best in your REI!

In addition to not paying their rent on time, they have also been operating an illegal prohibited business a yoga studio!

All of the auction sites such as Hubzu,Auction, Xome and H&M operate similarly.

Take a look at an operating agreement from an LLC (you can find in the files on here) that spells out these things in detail.