The list included how they made their first million, and it read like a broken record.

The value add could be a mismanaged property, a property plagued by vacancy (marketing deficiency) a property that can be broken down into smaller units hence growing NOI, etc.A move in this direction would serve multiple purposes:a) Buy a deal you could generate greater NOI than a similar 'straight' leased investment.b) Allow you to gain some experience managing and marketing CRE space.c) Provide you with a track record in commercial which conventional CRE lenders look towards when loaning on CRE.

For me, in Memphis, 1) Vacancy / broken leases2) Repairs3) Evictions / other PM fees

This statement came after it was completely rehabbed and re-rented.Some of the damage was from the tenants while living there (broken doors, frames, drywall) and some of the damage was due to what appeared to be cat(s) living in the unit unsupervised after the tenants moved out, along with food left throughout the unit with no power for weeks.

The media, the courts, and the neighbors, and sometimes family and friends view us a the "Dastardly Landlord" who only have broken down homes for rent.

Since the hot tub heater was broken because of them not cleaning it for 2 months, should I just tell them to pay for the repair?

Can't tell you how many fridge door handles & shelves have been broken/ ripped out, how many stove knobs, racks, scratches and dents I've tried to fix.  

The service line from the master BR upstairs had broken and water had gotten everywhere.

Ok so I sat down with Excel, Here's what I came up with.Cost broken down yearlyTaxes 600Insurance 588Mortgage 2628Vacancy (10%) 708Repairs (5%) 348Total Cost 4872Yearly Rent 7020Cash flow (Annual Net) 2148Annual Net (Minus Mortgage)  4776 Cap rate 19.9%Cash Flow per month is $179Cash-on-cash can not be calculated because I had no cash investment.Does that all look right.

This means removing 100% of C violations (mold, fire safety, mechanical), 80% of B violations (vermin, loose fixtures, broken tiles, smaller stuff), and 80% of A violations (really stupid items like a light bulb out).There are more - so many more.