You give up a LOT of control - You lose the ability to fully screen your tenants, you lose the ability to set your own rent, and in many states you lose the ability to evict a tenant, even if they aren't paying their share of the rent.

When it all happens and to what degree, who knows, too much volatility out there and too much wild-azz variables in it all. 

Lastly, I have a HELOC I have borrowed from for properties or used private money from friends as a way to come-up with downpayments.The key I have found to make this work goes back to your savings rate and ability to create margin.

Even with a high degree of alignment and compatibility, you will see things differently, have different priorities, have varying levels of involvement and enthusiasm. 

Having a proficient system in place that operates profitably, efficiently, providing ability to scale. 

@Arron Paulino Congrats on your ability to exit the struggling portfolio.

Everything starts with ability to source leads.

Rent control may prevent you from selecting the best tenant, limit your ability to evict non-performing tenants, and not allow you to increase rents fast enough to keep pace with inflation.I live in Las Vegas, and I will compare the environment for investors here versus California.Rent control: NoneTime to evict: 20 to 40 daysNo state income taxes.Pro business and pro landlord environment.Low operating costs (low property taxes and insurance)We have completed over 90 1031 exchanges, most of which were from California.

I make reasonable offers when they are warranted based on the ability of a property to appreciate and cash flow.

By developing you add another dimension to your control over location, which adds both value and sale ability.