One mistake or big unexpected expense could ruin you if you only have one or two rentals that are not cash flowing.That said, especially in the current environment, if you are coming from a very strong financial position then there may be times where it may fit your goals to invest in a highly appreciating area with no or negative cash flow.

i agree with you on the tough environment there for purchasing / house hacking but I wouldn't give up on that regardless of what else you look into. house hacking = owning real estatewildly successful arbitrage = not owning any real estatecan you look in Frederick MD or Fredericksburg or Ashburn or an exurb? 

Those that deal with the 12 1/2 % remaining have a chance for much better success OVER THE LONG TERM, in all economic environments.  

I have spoken with an agent/PM in Detroit that somewhat scared me away from the Detroit market (eviction rate is currently 8% down from 20% 5 years ago and such a different environment that I'm familiar with).

It will help raise wages and is better for the environment.  

You want to be able to get rid of a tenant who is causing problems in the home asap as it can quickly create a hostile environment for the other 4 people living there where now you have all 5 people contemplating wanting to move. 

Diane could not let that one go by AS @Glenn Paulson states  its a tough job.. and nothing could be further from the truth that a PM in a low value asset environment just sits back and does nothing.. there is nothing more difficult to manage in real estate than low value assets.Now take SF property with high wage earners that have their rent ACH into your account each month live as neat and clean as you do.. then I can kind of agree.. but not low end houses.. no way no how.There is over head to a management company .. its not all net profit.Also Glenn with these type of rentals if you have never been in them.. asking how its doing in the first 6 months is a waste of time.. you need to check in year 2 and 3 once the honeymoon is over and a few  turn overs have happen maintenance then you can get a feel for the true numbers..

The regulatory environment is the first thing you should consider when buying a STR here - it is both the worst and best part of being a CO STR investor.

You pay off the 135k loan and take back your 14k plus closing and holding costs - 20k and you are left with about 6k that is cash in your pocket.So now you are +6k, and you have a renter in there paying your mortgage and putting a couple hundred per month in your pocket and you used 0 of the 150k to do it, or I should say you left 0 in the project.You wanna create a funnel, an environment where you can get 3x - 5x of these done every year, and if you holding look for the 2 - 4s buildings. 

Its essentially in the longterm best interest of the property owner to ensure there is a non-compete clause in all leases; merely for the benefit of securing longterm relationships with the tenants.A diverse tenant mix can attract a wider audience and contribute to a more vibrant environment.