Well, they are once you get 20+ units but if you're starting with 1 SFR or 1 duplex you have to factor in how much those plane tickets will eat into your "$100/month cash-flow" (just to pick a random metric some people use here on BP).

Why not just eat the taxes?

A war zone may promise high returns. however if you cannot keep good tenants and have high turnover costs that will eat into your returns.

Reserve means nothing unless you are the only bidder.Work backwards: 230K retail5% hammer fee+$690 technology fee1% closing cost, you still need a realtor to administer the contract.Renovation: A simple paint job on a modest SFH will eat your $5K.

In my state, we are only required to disclose whether or not we know of lead-based paint, share copies of records (if any), and provide the renter/buyer with a pamphlet on how to protect themselves from lead-based paint (don't eat the paint).

You will be doing all these reno just to make $30k/$50k in equity if all goes as planned.... 10% of the ARV, plus I am not counting holding costs, that would eat up all your equity that you made on the flip. 

If you are a developer that has 10 projects and you make millions each time on 7 of them but the other 3 fail upfront and you lost hundreds of thousands per deal likely still making great return overall.If you are smaller developer with 1 or 2 projects that can really eat into your net worth burning upfront cash on a project seeing if it will take off or not.You could 1031 as mentioned and just buy something yourself.

I’d eat up all my profit in rent in a mortgage but I’ll be able to add some great value and hopefully get a 18 unit or larger building with the leverage. 

It may just take you some time to figure out what the right amount is, but if you just bought this property you probably already know the historical utility expenses.The downsides are obvious - if your water bill is higher than the rate you are charging, you as the owner are going to eat that charge.

(usually without local managers that "eat" my income).PM if you would like to get some tips on Out of country investing I will be happy to contribute.