I am no longer a property manager, I’m recovering from a car accident and just trying to get on my feet again.

Let's break it down in simple terms.Imagine you're at the amusement park, and you have two options: a roller coaster and a merry-go-round.The roller coaster is thrilling and full of ups and downs, just like the growth path in real estate.It can be exciting, but it also requires patience and the ability to handle unexpected twists and turns.The merry-go-round, on the other hand, offers a smooth and predictable ride, much like the cash flow path.

Planning for RepairsIf you're an investor planning to fix up a property and sell it for a profit (known as "flipping"), property inspections are crucial.They help you understand the scope of repairs needed and create a realistic budget and timeline for your project.This prevents unexpected surprises down the road.4.

Also, a bank is typically harder to bargain with if you had to extend the length of the loan or make smaller payments for a period of time due to financial hardships (always unexpected, but do happen!). 

If you have sufficient start up capital to cover unexpected expenses and vacancies, then low cash flow may be acceptable.

I suppose a good follow-up question to this would be:What are the largest UNEXPECTED costs you have dealt with as a landlord, property manager, etc.?

Otherwise, unexpected maintenance, vacancy and or the wear and tear your tenants put on the property may eat all your profit. 

Always expect unexpected S#$% to come up so make sure to underestimate all income and overestimate all expenses.

The start up expenses, ramp up time to build traction, and unexpected issues often make your one a break, even at best.

Anytime I've been burned in the past it was because the person had something unexpected happen and couldn't afford to handle that event AND pay the rent.   3x rent helps reduce the chance of that significantly (also looking at their DTI)