Lease 1 included tenant Person A who paid the deposit and moved in.After 3 years, tenant Person B was found to be in possession of the unit.Lease 2 was written to include tenant Person A (who moved out) and tenant Person B.

Does that include utility service to the house, a driveway, septic and well? 

If you wanted to earn $200k to live on at a W2 job....you'd need to earn significantly more because you'd have to pay income taxes, and payroll taxes on the income; where as taking on debt isn't taxable at all. 

Eliminate debt, establish a budget, and save.

The owner does not want to extend the debt for 30 years.

I just include the utilities in the rent.

I doubt many are going into credit card debt or if they are that's kind of crazy.. as this part of real estate has no smoke and mirrors generally. 

They have made major sacrifices and in most instances they have sunk fortunes into their portfolio to pay down the debt. 

I sank every dollar my rentals provided back in to paying off debt and acquiring more properties.

If you take out debt to acquire, you will be negatively leveraged.