Cash flow being one but CA laws regarding tenants being the other.

Here our privacy laws - and good judgement - would preclude providing personal information about one tenant to another.They're adults, they can work out their own issues.

But regular landlords who want to have nice properties, rent them out and keep them nice don't tend to do well there over time.Check out Landlord tenant laws too.

Check usury laws in each state, Mo. is 10%.

Practically speaking you end up at the same spot as a 75-80% on 20 year deal after a few years of amortization and rental holds very rarely go bad within the first two years because owners are likely to prop them even if they don't cash flow for a wile before they throw up their hands.

But it is still interesting to see the SEC to change the law, it could be a good and bad thing.

Joe Gore No thats absolutely awful and I didn't even know that was a common practice.

@Matt Liu , I cannot speak much to your state law, it is wildly different than my states, but the thing that stops him from filing if you are not in breach, is contract law.

That's why people with ideas that try harder to circumvent laws than just follow them are dangerous. :)

Spend 15-20 hours on this site searching, reading, practicing evaulations, studying your market, factoring in your available investment money, then set some GOALS.