The second level is supply and demand: How many units exist, what is the trend of vacancy, what is the trend in concessions, how many are being built, how many are in the planning pipeline, how many new jobs does it take to absorb a new apartment unit, how available is land for new apartments, how difficult is it to entitle, permit and build in the jurisdiction.

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.

Are you buying the subject 2 deals for yourself and paying the balance, or are you assigning the sub2 deals to someone else?

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?

Mainly local banks and credit unions for the small balance stuff.Hope it helps.

I would.If the worst case happened and the bank called the note due, could you cover the $12,800 balance?

If you start out collecting the rent in person it may be difficult to switch it up later.