Principal Paydown: $2,441 Total Gain: $58,317 ROI: 360.32% (on $16,185 upfront investment: 3.5% down payment of $8,715 + 3% closing costs of $7,470).Year 2 Analysis Cash Flow: -$752 Home Appreciation: $6,120 Principal Paydown: $2,617 Total Gain: $7,985 ROI: 49.34%.Year 3 Analysis Cash Flow: -$375 Home Appreciation: $6,242 Principal Paydown: $2,806 Total Gain: $8,674 ROI: 53.59%.Year 4 Analysis Cash Flow: $9 Home Appreciation: $6,367 Principal Paydown: $3,009 Total Gain: $9,386 ROI: 57.99%.Based on these numbers, you’d have negative cash flow for the first three years and only break even in Year 4, assuming a 2.5% annual rent increase.Adjusted Scenario see second picture: Landlord Covers Gas and WaterIn the second scenario, I assumed the landlord would pay for gas and water at $300/month while maintaining the same 2% home appreciation rate.

Read or watch YouTube’s on India and Africa bringing water to the land.In the meantime you won’t save your way there.  

I have warned countless people that the "new", "Cheapest", and "shaking up the insurance market" carriers typically come into the market under priced, have a wave of claims, then they either jack up premiums to survive or fire their staff to keep heads above water.

Tenant pays all utils except water.  

Section 8 can be a PITA in some areas with things like paying rent on time if there is a water stain on the ceiling.

That's easy compared to trying to fight and erroneous $13k water bill (a real issue we had) or an insurance policy tripling (that too).

Then based on @Michael Baum's suggestion, I think I will have my cleaner and/or maintenance person do monthly/quarterly maintenance like using using enzyme based cleaners, grease fighting drain treatments and hot water flushing. 

I don't recommend throwing the baby out with the bath water, and definitely make sure you understand the nature of the Mentor you choose.BP is a great resource to meet some amazing people. 

It's wise to stick your toe in the water first and fail fast in a small way if you're going to fail, right Vanessa?

For example, the iconic Malibu waterfront homes were built directly over the water, many by variance, and assumedly will not be permitted to reconstruct, certainly not with the same materials or attached architecture.