The second question seems to hit the hot button of a lot of contributors on BP, probably because it comes down to differing individual core values.To illustrate, consider this hypothetical example:Scenario 1: You're in a shabby second hand store and notice a dusty Van Gogh that you know to be worth $1 million dollars. 

If there actions (not paying rent, being late, a nuicenance so forth), illustrate an issue for renewal, I simply don't renew.

Those were just rhetorical questions to illustrate the entrepreneurial mindset of acquiring an asset that covers the cost of a liability but thank you all for trying to help me out! 

Yes, thanks for your replies I have tried to use the calculator to illustrate what I sort of see.

In this case we know that you will make $10 year 2, you should in theory put $0 down and make infinite returns.I know that is a bit of tangent, but its just supposed to illustrate that hypothetically since RE is an appreciating asset, the lower your down payment, the harder your money is working for you. 

@Mike Campi, NOI doesn't take into account financing, because people finance properties differently and having a common base line s important when assessing investments.While the example you cite is unrealistic (basically says a property worth $500k would only rent for $1000/month), it illustrates an important point.

Can you provide a simple example that illustrates how depreciation benefits a property owner in practical terms?

Of course, I am not saying to tweak the numbers to make them look good...I am simply illustrating the fact that those numbers on that paper really don't mean anything if they don't actually put money in your pocket.

Or if you were selling it fsbo, this illustrates the most important job the listing agent has on a flip, getting the property to appraise.

It has become a buzz word for folks to use to attempt to illustrate they know something, even sell some books and courses.