Any MF investment is driven by cap rates.

To make this even more difficult, you can not sue your self, even if there are 2 separate entities.So in the end, if you want to protect the cash flow of the property, you need to either purchase the liability coverage for the property under the owner name or purchase the liability coverage for the property under the management company. 

(myself included) Very difficult to get loans without it.

Regarding what Kevin Dickson and Joe Fairless have said, verifying the law can be difficult.

Main level - enclosed porch, living room, dining room, bathroom, and kitchen2nd level - 3 bedrooms, bathroom,Attic - sitting area, un-permitted kitchen, 2 bedrooms, office, and un-permitted bathroom. and lots of storage (I will take out the kitchen and bathroom and cap everything so it is compliant)basement - new gas boiler, and water heater, unfinished but +9' ceiling height.

I'm realistic about cap-rates in Southern California, so I don't expect anything spectacular.On to the actual property.

Hi,I have worked on Apt commercial properties to get them under contract with attractive CAP rate, solid ROI with add value strategy, presented to investors and received positive feedback.

Financing your next deal may be more difficult to qualify if you plan to use any sort of Fannie/Freddie financing.

I'd imagine MUCH more difficult than a single family or town home, right?

@Jeff Jenkins what type of project are you looking at--number of units, ballpark of purchase price, cap rate, area of town?