This doesn’t negate the need to check the lines, however.Pay Attention to Pride of OwnershipAmateur repairs—or a lack of repairs—and deferred maintenance are typically the result of a “low pride of ownership.”

If I'm understanding you correctly, yes you have the concept correct. 

To me that expense would negate the increased profits of STR, which is the whole point of STR. 

The covered parking area and patios should have adequate drainage to prevent water accumulation and potential damage.Investment ForecastPurchase Price: $849,900Total NOI over 10 years: $308,782.13Year 10 Value: $1,256,336 (based on a conservative 4% appreciation rate)Annualized return: 6.30%ConclusionWhile this property is poised for appreciation, sustaining it over several years for substantial returns would require substantial financial resources due to high debt servicing costs and negative annual Cash on Cash (CoC) returns.

From my assessment and experience, B-class locations will have negative cash flow (not break even), depending on how you define them. 

Too early to tell but the concept is interesting and the properties appear to be reasonably vetted.   

Negative Cash FlowOne of the most common reasons to sell a rental property is when expenses greatly exceed rental income.

While it may seem like a simple concept, it's actually a very complex process that requires significant documentation as well as specific methodologies.

We made a bet: be okay with no (or negative) margins on cleaning and let high quality reviews pay dividends years later.It’s paying off. 

The investor who purchased in 2007 with no cash flow and large leverage would either have to have had the cash to cover 4 years of negative cash flow with negative equity in their property.