Keep in mind that A million Dollars of RE free and clear can make you as much money as 5 Million leveraged to the hilt (numbers for illustrative purposes only)...the difference being the Million Dollar portfolio has 20% of the headaches as the 5 Million Dollar Portfolio.

@Peter KimAs has been mentioned you have the low/high cap rate and who it benefits backwards.It's an inverse relationship.A high cap rate is good for the buyer because they get a good return on their money.A low cap rate is good for the seller because they get a higher sales price relative to the NOI of the property.To use some numbers to illustrate the relationship.Let's say a property has an NOI of $100k.At a 10 cap, that property is worth $1M; 100k/1M= 10%At a 5 cap, that property is worth $2M; 100k/2M= 5%So from the buyers perspective they obviously want the higher cap rate, just as the seller wants the lower cap rate.

In other words, DF is nothing more than a reference to a much larger piece of regulation and when we cite it as regulation I think many folks are illustrating they don't fully understand the bigger and broader set of rules.  

Illustrates the point really well - http://www.pagetutor.com/trillion/index.html

We have all seen illustrations of our self devil sitting on one shoulder and our self angel sitting on the other.

I'm hoping this sufficiently illustrates their understanding of the situation.

It illustrates the main parts of Albuquerque. http://www.visitalbuquerque.org/includes/content/d...

If a tenant pays it after I file and includes all court costs, no eviction.I think we do well to play out hypotheticals at times, but what this should illustrate is the need to paper your tenants.

So when you show up with comps illustrating garbage properties, expect the panel to ask you how you selected your comps, and if you made any improvements.They will ask about your rents.  

But as @Lee Ripma mentions there are other ways to go for passive REI, and I wrote a blog article last year Three Key Routes for Passive Real Estate Investing that illustrate and compare some you may want to consider.The best major cash flow markets have all grown very competitive for turnkey investors just starting out, so if you are going to go that route in might want to look at smaller markets that are earlier in their turn around stage, such as Dayton, OH, if you are going the turnkey route.