That is one of the principal benefits of owning real estate that is completely ignored by a simplistic 50% rule of thumb analysis that is prevalent on the forums.

Back in the late 80's interest rates were high, tough to make cash flow, so we increased contributions $1,000 month, and with the small cash flow from the 2nd and 3rd properties, we cash flowed 3 years after we started at $1,300, which includes our contribution.Then by 1993, interest rates dropped from 13% prevalent in the mid 80's to 7.5% by 1993, and I refied everything.

In effect, it is a judicially created tax shelter for businesses that limit their physical presence in a State but sell their goods and services to the State’s consumers, something that has become easier and more prevalent as technology has advanced.

The prevalence of "ohana" units in HI opens up lots of flexible options though.

The entity requirement is prevalent, but not universal for the reason I mentioned above. 

While properly maintained K-n-T can be perfectly safe - it is still prevalent in industrial settings and many power transmission lines are similar to K-n-T - the problem is that most residential K-n-T is 75+ years old and has not been well maintained - it's been spliced into and extended over the years ... quite often incorrectly.  

@Justin Eaton @Stephen Kappre   As an attorney representing clients in the area I can confirm that these issues are more prevalent than they should be. 

In areas where wind/hail claims are less prevalent but still higher than average will include a deductible of around 1 - 2% of your coverage A limit.If you have the exclusion or the deductivble and the amount is higher that it cost for you to do it yourself don't raise your rates by fililng a claim.

Bottlenecks are prevalent in any RE activity.In reality, I don't see such a system being adopted, while it may be more meaningful, by most investors.

In commercial real estate deals are valued primarily through the income approach vs comparable analysis which is prevalent in residential real estate.