Once you make good money on your investments in an up market, and you enter a down market, wealth preservation takes precedence.

One flip I did, I priced with the comps but they were about 4 months old and the market had already went down so the home ended up sitting for a lot longer than I would have liked.

Renewing and raising rents up to market rate in the area.

Our investor put up cash.

Here is what I've found up until now -1.

This means that to benefit from the separation between my personal assets and the company’s assets, I need to establish the LLC in New York State.However, I’ve found that the start-up costs and procedures for opening an LLC in New York State are significantly higher and more complex compared to other states (such as the requirement to advertise in several newspapers for an extended period).

Do they just build up enough equity to refinance into a conventional loan in 1 yr? 

Very humble, hardworking, blue-collar family and they happen to grow up in a part of California that is highly desirable now.

Not enough info is provided to make a determination, but I have fear of the low cash flow combined with appreciation that has not kept up with inflation.  

You typically don't want to do any renovations before the 2 years is up...just basic safety and securing the property.#4.