Probably you need all three, but it depends on your priorities and ability to cover costs for all these. 

I won't claim to know if that is legal or not but if there are any attorneys on the bigger pockets platform, I would be very curious to hear their opinion on whether a sponsor has the ability to unilaterally erase an investors capital.

Not only does it keep focus on the metrics that truly matter (which can be calculated with minimal inputs),but also affords the investor the ability to provide the pertinent project information in a clear and concise manner to prospective lenders.

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

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.

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.

Thanks in advance.Any advice needs to know whether or not the loans have been personally guaranteed and if so you’re ability to cover any shortfall in sales price, and finally if your other assets are exposed to loss in event of a judgement or whether they are “asset protected”.  

Everything starts with ability to source leads.

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

Your ability to resolve problems quickly and efficiently is what will allow you to have success in this business.