@Andrew Liu Does your operating expense taxes/insurance?

This is a passive way of earning with real estate-based security, protection and insurance. 

double check your outlay of costs on arbitrage. you may not be paying to buy a property, but you will have to furnish it, carry insurance, and pay the owner their money too. and at the end of the day, the owner can stop your "business" and take it off the market or sell it at any time. 

However, after running the numbers accounting for insurance, PMI, taxes, vacancy, capX, property manager, etc. the property is estimated -1.85% cash on cash return (-$600/mo) once I fully rent the property.

Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable).

Keep in mind that many of these cheap homes are selling for less than a third of their insurance replacement value, which really means that the land has negative value - let that sink in.Most buyers who can actually qualify for a mortgage will get a PA for $200-300k and desperately want to upgrade their life.

Reason being, if something goes wrong, the PM is covered (and so are you) by the plumber's insurance and license.Apparently, this is around the same price other people around the US are paying. 

As others have stated, it's tough to lose the various benefits (health insurance, 401k employer match, etc), not to mention the income itself. 

Make sure you update your insurance policy.

Taxes, interest, insurance and maintenance will eat into the profit. 2.