This is certainly text book and absolutely the proper way to analyze a deal.Im not sure what he owes on the home but based on the payment and the year it was bought and the fact that its 20 min from Austin im just going to throw out 500K for conversations sake.500K compounding annually at 3% for 5 years comes out to approx $578,000, and you have the loan paydown aspect as well obviously. 

@Rick Baggenstoss  "eviction service"   thats useful to hear, thanks for mentioning that "systematizing" aspect that padsplit.com's system provides. 

Without commenting as to the ease or difficulty, passive or active aspect, here are a few commercial deals I’ve made outsized profits on in fairly short periods of time.  

We are an all-in-one or a one stop shop company, meaning that we handle all aspects of the investment process - Buying, selling, managing, and have the connections and resources to help in any other way.

While this affiliation might bring certain advantages like integration and streamlined services, it’s also worth noting that many tech entrants in the property management sphere sometimes miss the intricacies of real estate management, focusing heavily on financial aspects instead.If you're looking for alternatives, you might want to consider other established platforms that specialize in property management, like AppFolio or Buildium, which are paid services but widely recognized for their comprehensive features and security measures.

It effects every aspect of the property and performance- the type of loans and insurance you need will change if you don't hold the property in your personal name. 

The second aspect is how viable it is for me to buy and sell in a particular market that is far away and where I’ve never visited.

The main hurdle that many of our borrowers face are the income aspect of it, especially expensive markets like the West coast.

I mean once you talk to them, it's pretty easy to spot if they know what they are talking about.I've work on STRs before and to be honest, it is not the most fun aspect of accounting because the volume of allocating income from all sources (airbnb, vrbo, stripe, direct booking, and so on) to a bunch of random expenses (cleaning, supplies, repairs, advertising, commissions, and all typical real estate expenses).I had to strictly rely on the client's input on what the expenses belong to which property or even units, if the paperwork doesn't say. 

Everyone has already chimed in on the protection/ insurance side of LLC's, but one "fun" aspect of creating separate LLC's for each property is you can open up a credit card for each of those LLC's and easily keep all expenses on those property specific credit cards while racking up points and using those for travel and such :) This is a great forum thread and question!