The RE agent who sold it to me is hesitant to go through the exercise of driving out to the property, being present while I show it, then perhaps having to repeat the process if the buyer wants to see it again.  

Like I said if you are able to physically go there (and you may be in FL but if there is a problem you can easily go) it could work out but it was real work and even after that work the returns were higher on B class units. 

Also, if specialized equipment has been installed or the physical environment has been modified to meet a need, and they've settled in and feel comfortable, that would be incentive to stay.

RE isn't an exercise machine, if they have enough sense to be "affluent" (LOL) they can make a decision.

https://www.redfin.com/CA/Los-Angeles/608-E-23rd-S...Here's the calculations: https://docs.google.com/spreadsheets/d/13ieez4soHg...I just kind of did this as an exercise to test my analytical skills and see if other more savvy investors think that I'm calculating things correctly. 

The reason for this is in the event of any kind of registered mail or legal notice that needs to be served to your company, there needs to e a physical address and person to sign for and receive these notifications.  

There just a little of a drive at 3.5 hours away but when I am in town I try to meet up :)Beyond physically going out to connect, you are at a place with amazing resources!

A few thoughts on this...I would say physically living in a property for a set amount of time allows you to maintain an argument that you are holding the premises for speculative / investment reasons, thus avoiding dealer status and employment tax.

But with the assumption that you have already gone through that exercise and you are asking the forum knowing the answers, then I believe you really need to look at what Chris is pointing out.If the numbers work well on both the buildings and they both cash flow, but at different levels, then you really need to ask yourself how comfortable you are with the "bad area". 

I'll have to add this exercise to my buying criteria!