Instead of 40 houses cash flowing $200 each or $8000/month, you buy 10 houses and pay them off for a cash flow of $10,000/month with 1/4th the headache.People don't understand the amount of time, energy, and stress involved with managing a lot of doors, especially if they are lower-class properties typically needed to generate cash flow.

They're highly popular for turnkey rental properties because qualification is primarily based on the income generated by the property itself rather than the borrower.

You need a lot of units under management to pay a maintenance tech 40 hours per week.When determining when to hire a PM or ops team member, that greatly depends on how much revenue your units generate.

For example college rentals generate some of the highest ROI of properties I come across in New Jersey but it depends on the school and location of property.

When I use AirDNA I do not focus on the algo generated number too much, rather how are the most comparable units doing. 

Key Questions to Ask YourselfProperty Cash Flow: Will the property generate sufficient cash flow to cover the monthly payments, taxes, insurance, and other expenses?

While they generated some cash flow, I found the effort required to manage them wasn’t worth the return.

The question: A commerical property in a highly desireable location which could fetch $6+ million and generates about $400k after expenses became available and I'd like to add to our portfolio instead of doing a 1031.

If not I understand and will work to generate a contract that encompasses all of these elements. 

With 4 rentable rooms (including the basement), I expect to generate $3,600/month with full occupancy.