It's an estimated cash on cash return given current rental rates subtract expenses assuming 7% interest rate, 10% management fee, 5% repairs, 5% capex and other expenses like mortgage, insurance, tax. it's a estimate to tell you what properties to analyze vs ignoreyou can see the are pockets of negative returns as well as pockets of positive return. this is to supplement the data @Devin Conley provided

Real estate investment can be incredibly rewarding, between the cashflow, appreciation, and tax benefits, it truly is the greatest wealth creation tool. 

Is it tax smart? 

You must have the Business tax license & pay all the fees required.  

Will the property taxes skyrocket?

I use a spreadsheet I developed to determine my entry costs, carrying costs, cash flow, tax write offs, appreciation and exit costs.

Is the option government supplied insurance where taxes supplement the insurance?  

We owe $154k on the property and the interest rate is 4.25%, the monthly mortgage is $1050 with taxes and insurance.

One thing to think about are the tax implications of being a Canadian paying US taxes.

Most on this forum can't even come up with a downpayment, you can't expect them to ride HOI/tax increases, vacanices, etc., with lower leverage and less cash flow on a property.