Those who fall under category 3 achieve best results but they are an extreme minority.

This resulted in approximately 600,000 gallons of water wasted and nearly $12,000 water bill over the course of 2 months.

And, the result......

When that is the case if that bill is unpaid it can result in a lien on the property!

How can you possibly match that?

Every property of interest must be evaluated based on current and future performance.Current ConsiderationsTime to rentRenovation Cost & RiskInitial ROI and cash flowPurchase PriceMaintenance costAcceptable area rental restrictionsIn an area that is doing well and likely to do better in the future.In the migration path of urban sprawl.Future ConsiderationsThe location has a track record of appreciation and rent increases.It physically matches the expected demographic changes for the foreseeable future.Buy what your “customer” wants to rent, not what you think is a good property.

However, it does demand solid digital marketing expertise to see positive results.

The end result is the same.

Subtract depreciation, explained here:https://www.biggerpockets.com/forums/51/topics/1121063-expla...Because of Step 2, depreciation, many cash-flowing rentals end up showing $0 net profit, resulting in no tax increase and sometimes in tax decrease.

You're going to work very hard, and maybe you won't see the results of your efforts right away.