I love it because it does not factor in my Debt to Income and just qualifies the property.

Property Valuation and Cap Rates Impact: Rent control can affect property valuations by reducing the potential rental income, which is a key factor in determining a property’s value.

Then there's other factors to success especially in a heavy lift like this, some of the most important in my opinion are Being on site regularly to manage the contracting processHaving a lot of cash reserves - 'a lot' imo would depend on how thorough your current bids are and how old the property isYou mentioned it's bleeding cash now, whatever your timeline is for the property bleeding I'd double it and see if it still makes sense. 

From hidden structural issues to last-minute design changes, these can add up quickly.

Buying correctly is another large factor (in any RE transaction).Of the comments above from Evan, while it may appear to be scary and cautionary (as it should), don't let it discourage you either.

Look at common factors of other properties in the area that are getting good rents, then look for well-priced properties with the similar fields.  

Start-up costs are also deductible but are amortized over 15 years with a limit of 5k.Start-up costs have strict rules and your case might not be the same as this one.Case Summary:Timeline line of eventsStarted investigating property: FebPut first contract (canceled): MayBought first property: December 30thWhether a taxpayer is engaged in a trade or business is determined using a facts and circumstances test under which courts have focused on the following three factors that indicate the existence of a trade or business:Whether the taxpayer undertook the activity intending to earn a profit;Whether the taxpayer is regularly and actively involved in the activity; andWhether the taxpayer's activity has actually commenced.On the basis investor testimony, we may assume that he undertook this activity to make a profit and that he regularly and actively engaged in it.

Now to the "DUH" factor; who's paying this ADDITIONAL $25k per FTHB money?

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I self manage my units so my views are more related to the actual work of property management rather than communicating results to property owners.The most important factor in successful property management is not a personal quality or trait, it's having EFFECTIVE processes in place to support the business.