Shift water/sewage and gas costs to the tenants? 

Baby boomers are aging so they are going to start putting homes on the market in supply plus go to assisted and nursing homes.The younger generation is often renting and not choosing to buy and reports say they don't have money saved.The housing and college loan bubble ad to this huge demographic shift.

Loosing guidelines with lending laws is what got us into trouble back in 2008-2009, and yet it appears we could be headed there again.Being a CA real estate Broker and looking at investing OOS for long term buy/hold properties (Small multi-family communities up to 15 units and/or possibly SFRs) for positive cash flow, I don't feel certain markets where I'm looking to invest (Ohio, Indiana, Oklahoma, Utah, Tennessee) will be as impacted when the SHIFT and DOWNSWING hits, as it will in BOOM/BUST states like CA, NV, AZ and FL.

An Out of State C can be paid management fees, and a heap of other fees to shift the income out of MA - thus avoiding State tax. 

We then come in as the equity investor to cover out of pocket costs (inspection and appraisal) and holding costs (6 months worth).Used correctly leverage will boost your returns while allowing you to shift risk to the 1st and 2nd mortgages. 

I think if you shift the cost of the background check etc. to the prospective tenant that is fine, but I recall Tristan specifically saying he removed his application cost due to recent changes in the law.

Paying down a mortgage only shifts cash flow as you must apply the income where it belongs - paying a opportunity return on dead money is mandatory when investing in income producing properties.

The margins are much smaller which is why I shifted my focus to direct mail.

You can easily over pay, can easily see a slight shift in the market and concessions become a norm, you can see less than 6% appreciation, your tenant could trash the building, not pay rent, refuse to leave, etc..If a 12 month resale truly is your exit strategy, there are probably a lot of lower risk ways to invest, that would result in better cash on cash return and less hassle. 

I currently work as a nurse and am trying to shift my extra income into real estate investing.