You don't want a scenario where you have partnership capital account that is uneven and could cause liquidity or even just partner disagreements.

I also deal with those same fools in real life when I have to fix the issues they caused because they wasted a sellers time with thinking their house was sold then 20 or 30 days later the wholesaler backs out and the seller is screwed.

Most likely the state where the property is located is where lawsuits would be brought if they are something for personal injury like a trip and fall or something of that nature because the “cause of action” arose in that state.

Do it now while you are young cause it’s sorta lame way of living.

Some of the areas where that will cause investors to become frustrated are regular reporting, timely delivery of payments, accurate and transparent financials, timely delivery of tax documents, and the ability to meet target projections related to timing and returns. 

"I had $50,000 worth of electronics destroyed by the burst pipe caused by the bad plumbing on the rental"  "Good thing you have renter's insurance, you're welcome."

And doing this will really will cause you to make it as an investor faster than if you dive into it right now.

On the flip side, students can sometimes cause more damage than your average renter, so make sure you're asking for a deposit that will cover you if they destroy the place.

The neighboring house to one of my rentals is causing problems on my house.

It gets even better if you are a Veteran cause you can do the full conforming amount without paying PMI and if you go Jumbo you only pay 20% of the difference down.