Granted the annual fail rate is already about 90%, it's easy enough to earn a couple bucks to keep the next crop of hopefuls coming in every year to replace last year's failures. 

Additionally, considering the annual increase in general operating expenses is crucial when estimating NOI and property valuation

This could conceivably really bump up their annual depreciation write off. 

@Patrick HancockLLC's are not free and there are costs associated with LLC1) Formation costs - potential attorney fees and setup fees with the state2) Registered agent fees if the LLC is not in the state that you operate out of3) Annual fees to keep LLC active4) Bank feesThere are also additional administrative burdens with having so many LLC's.

If you have a reserve of $6,000 for one property, your annual cash flow could still be hit hard by a bad tenant, or the combination of a bad tenant and a failed furnace.I'm curious how you manage to spend 4-6 hours per day on real estate.

Trying to determine if this is reckless or sophisticated investing....The idea is that annual percentage increases and the possibility of rates lowering will allow for positive cashflow.

@Ben Kelleher Kissimmee (and Davenport) are saturated with homes...because there is an enormous demand with over 70 million guests annually.

Let's also assume independent investor wants 12% annualized return on $100k investment.  

\Keep in mind it is fairly easy to go from an STR to a LTR but more difficult (annual lease) to go from LTR to STR.

Going full professional with a service provider adds a monthly or annual fee.The car end connector will change in 2025.