You hope you never have to use it, but it's good to have JUST IN CASE.

Another item the BoA rep always mentioned was building a "relationship".

This is applies nationwide, not just in LA.

Ask for tenant estopels which are forms filled out by the tenants letting you know how much they pay, their deposit and lease terms.If you don't know expenses make a bunch of cold calls to owners on craigslist with similar properties and let them know you are new to the business (people usually like to help others if you approach it correctly) and are currently in escrow to buy a 5 unit property (don't tell them the exact size or location just in case they are snakes and try to swoop in and buy it from under neath you) and wanted to get their opinions on rents, vacancies and expenses.Keep track of this info, see if you can see a unit they have for rent and keep a chart on these properties so you can compare to your own.If you are buying larger apartment complexes check out IREM.Good luck but be careful.

If you're speaking to the owner or their rep over the phone don't try to talk about things you don't understand, you'll just come across as ignorant and no one will take you seriously.If you are really worried about what to say, have a realtor do the talking for you, or split the deal with another investor.

I will tell you from the deepest depths of my soul that I can't stand property management.You ought to here the horror stories I hear from my sellers when I list their properties.Managing is a very tough business.I think where many investors go wrong is they try to be CHEAP in paying a manager.When they buy that 1st house they believe that collecting rent will be easy.When they find out it is much more intensive than thought they now look for a manager.The problem is they didn't take this into consideration when buying and now will have a cash flow problem.So they then try to find the cheapest person possible.YOU GET WHAT YOU PAY FOR.What buyers should do is say I am going to manage myself but just in case that doesn't work out I have already priced a PM company into my offer to buy this property.This is what happens to people who don't plan enough for a fix and flip and they get stuck with a rental and a nightmare to deal with.You have to plan upfront as much as possible so that you mitigate the risk as much as possible of problems happening.For houses many brokers/agents look at it as good side income but it is not a huge paycheck for them.As soon as sales pick up they could care less.Why does everyone let themselves get locked into a 1 year contract with no provisions??

Terence : I am an expert in life insurance and have done my share of estate and business planning for clients as well as having been a registered rep and lichened in series 7.

They are known to take a hard stance against investors and they usually will not pay 6% comissions.Eric-I agree that some loss mit reps do get emotional at times and this certainly can have an impact.

Is an LLC needed, I do not believe so...however, what is the harm in making one just in case.

I was made personal rep of the estate.