All have 20 year mortgages at 5% interest and 5yr ARM.

Safety should be the #1 priority at all times.

It worked out really well because with me investing some of my own money, it put pressure on me to work hard and gave me motivation each day, but by investing with a seasoned investor, I had a safety net and someone to go to with questions. 

They pay the bills and bring in the rent but offer little consultation on improving value to the property, have no understanding of loan types (ARM how it operates, commercial and documentation required, etc). 

., fixed conventional loan, or 10 year ARM with adjustment, etc.).  

After a negotiated price the city shut the property down for safety violations.

@Ana CoelloAs was mentioned, most municipalities don't allow them because of the safety hazard.

Just keep in mind that you are paying for that "safety" with foregone profits, it isn't free.

Being a former physics teacher, I like to be armed with evidence.

He also mentioned his clients - who are a married couple w/ several homes in my area also uses this structure for Credit Protection and safety.