This is why screen your tenants before moving them in are so critical for landlords. and most likely people who carry them selves a certain way has a track record. 

Am looking at these two properties in LA, one is a 4-unit 50 years old just East of Culver City, somewhere east of Hauser and just north of Jefferson Blvd. this one is a bread and butter property which almost covers its own expenses and will be completely carrying itself in 5 years, second one is a 3-units 95 years old on Eagle Rock in walking distance to Colorado Blvd with one unit vacant (needs 30K to rehab).

You're busy, "cheap" midwest houses are not what you want, invest in quality product (A/B neighborhoods), this will reduce your risk.

The risk though is that influx of inventory could decrease demand in the area if there is no influx of people wanting to live there.Neighborhood wise, I think it could help bring money into the city with all the retail space but as far as population makeup I think that's definitely a preference.

If you qualify anyway, you would probably be better off just getting conventional loan in your own name.Another concern is that co-borrowing with an LLC could be the equivalent of co-mingling funds, so you run the risk of making the LLC useless anyway. 

There are so many risks to mention in one email.

Each one of them have a flashy websiteOne can invest in the Public REITS, but will not get much diversification from the stocks & bonds & presently have low yields.I understand the step up in basis for the heirs after we pass away, but at some time in the future(in old age) if we decide to not do 1031 Exchange anymore, I suppose we will have to pay the Cap Gain Taxes, only it will be a much larger sum as all the carried over proceeds will be taxed. 

No is low risk, yes is always a risk I try to mitigate.Separation in business decisions is essencial in my opinion.

I would say it's a high risk / high reward play.

You can find value but if you are only buying one property you increase your risk.