So you’ve also increased demand 5%#3 the $200k scenario says owning rental properties is becoming a worse investment as the returns are diminishing.

You will have vacancies from time to time and your your cashflow will diminished.

In areas like west Orlando or Altamonte or Apopka, a 4/2 house can get a solid premium over a 3/2, but that premium seems to diminish a bit in Lake Co.

Would this diminished supply not put upward pressure on pricing?

This benefits Wall Street brokerages but diminishes your returns.Now let's talk about the myth of QRPs.

We have HUGE demand with miniscule supply, hence amplitude is at 150% UP, but, one a diminished affordability metric. 

Account Closed if you plan on hiring out management anyway the benefit of the apartment complex is slightly diminished, you limit your purchasing options to make someone else's job easier. 

With rates running up, pricing seems to have softened a bit, so "Exit Strategy 1.0" (trying to flip / sell) would probably diminish the already small margin to where I'd be upside down after paying realtors, taxes, lenders, etc.The tenant moved in last month. 

As others have pointed out, increased expenses due to your learning curve count against cash flow, but they are a variable and cannot permanently diminish cash flow. 

Of course it doesn't diminish your accomplishment one bit whether you have seven or none.