The first tenant I spoke with was clearly dishonest about paying $900 a month.

I see both outcomes in my own client base, and the difference usually isn’t the friendship - it’s the lack of clarity before money gets involved.Most of the partnerships I’ve seen fail (including ones people bring to me after the fact) don’t blow up because someone is dishonest.

It's very illiquid, hard to get out of a bad deal, potential tenant issues, manage the property manager (I have heard numerous incompetent or dishonest PM stories from other California investors). 

But part of me just feels like the future may get worse because I'm seeing petty and dishonest traits being revealed.  

We went with a nationwide property management company to manage a SFH. The PM signed a lease with tenants on our behalf that included things in the contract with the tenants that we said we didn't want included that w...

Unfortunately after following through on this a little more, they were fully aware of what they were doing but were downright dishonest about not letting me know.

Many people who have heard about it or have dealt with a wholesaler have dealt with DISHONEST people. 

I am about to put in an offer for a investment property in Caton OH.

Investor sold after 3 years of trying of hoping it would improve 2) another Indiana one not in Indy but nearby county  - dishonest PM never checked on property or tenant, tenant vandalized property and stole appliances and water heater after being served eviction notice 3) Not really a horror story but investor sold 5 Indy properties, kept one for now, too much maintenance and high turnover.

There are plenty of firms which were never dishonestly managed, no need to only look at rosy projections, which may not be backed up in long run and not at management past.