I ASSUME you’re talking $400+ in extra expenses for providing water, power, sewer, gas, internet, communal area cleaning, and exterior maintenance.

We bought a home built in 1900, insurance water damage coverage is 10% of the dwelling limit. 

The current owner is letting me take over the property as a tenant as long as I pay the water bill and the mortgage payment on it and whenever I decide I can purchase property for the balance of the mortgage  they are in no hurry for me to purchase the home as long as the mortgage is paid. 

My principal/interest, escrow, and insurance is 1570, and my HOA is 306 and it includes water.

We bought our first rental in dec 2023, this was to test the waters of being a landlord in the US.

Think on it, how much does $250mnth buy for a furnace, a/c, water heater, carpets, really any reno at all?

Lead water lines have been a big topic here and I imagine in every older city in the midwest and east coast.

I know it can feel like uncharted waters at first.

I also see your point about avoiding bargain basement properties, especially insofar as tax shielding is easier with an asset of a reasonable size.Your point about barriers to entry is also interesting, since I suppose those barriers can be geography (natural boundaries of mountains/water), but you're probably referring to that which impedes future construction?

We fixed the foundation and the flat roof issues with pooling water, and rents didn't meet the mortgage just yet.In 2023, we finally started to cash flow.