People claim that 1031 investors over pay all the time just to avoid taxes.  

What about the utilities, property taxes, maintenance and repairs, capex, etc. are any of those optional for you?

The issue I see most is the cashflow gets crushed by HOA fees and the added headaches of having them tweaking rules etc. 

It may sound nice to pay a 6% management fee but the extra fees can add up to be more than the other company that charges 10% with no additional fees.

What we do is bundle it into an application fee.

If the permanent financing will allow you to recover most of your initial investment and the fair market rent covers the principal, interest taxes, and insurance with cash left over, you have a BRRRR.

We were initially looking out of state for a potential move and or investment property just because the property taxes without being able to homestead, plus high cost of insurance, and harsh weather on homes made me feel like it might not be worth it.

We called them out on it and asked for tax returns.

On property number one, I would cash flow $750 a month after mortgage, taxes, and insurance if I also rent out the unit I live in.

If you’re interested in investing in real estate, you can consider doing so with a Self-Directed IRA to defer taxes on capital gains until you actually withdraw the funds from your IRA.