So, what is happening today is not as important as what will happen in the foreseeable future.If rents are increasing faster than inflation (I use 5% per year as an average rate), then it may be worth holding the property, since your cash flow will increase as rents rise.However, in your post you stated, "Mortgage rates have kept increasing as well, that's why I put a range on negative cash flow."

Is the higher price agent inflating to get the listing or is the lower price agent just not keyed in well enough in the specific neighborhood?

You'll improve over time, but this basic formula remains.1.

There are really great REI opportunities in different markets - markets in the Midwest and Southeast of the country are particularly lucrative - where not only are the purchase prices reasonable for most RE investors, but the homes are turnkey (new builds or completely rehabbed homes, tenant ready, systems 10 years of life remaining on them, property management teams in place) with appreciating home value AND appreciating rent.

All of our cash has been going into a larger development so we haven't built on our remaining 8 lots yet, but if you are interested in getting involved I can send you more information or set up a call with our partners.  

With major companies expanding in Texas, demand for housing remains high, driving faster appreciation.

Form 3115 allows you to restore the fairness in this situation and "catch up" with the remaining $30k of depreciation that you failed to take in the years past.

The remaining potential issue is their rental properties.

Although I've considered a future line of credit against the property as my best long term option, I would need to pay down the remaining balance first.

Miami Rental Market Update: Rents Drop $200 as Affordability Remains a ChallengeMiami has officially ranked as the second-most unaffordable city in the U.S., but there’s some good news for renters: local rents have dropped to a 3-year low, with decreases of up to $200.