Here is the source for the commission rate, right from the Sitzler NAR lawsuit judgement (bold text added):"In addition to training, Plaintiffs have presented expert testimony showing that Section 2-G-1 had the effect of stabilizing commission rates.

Tons of double sided tape used which results in a fair amount of extra effort to restore (most cases paint comes right off the wall requiring patching sanding etc, some cases Good-off was effective.

What makes it slow in this case is that you don't really start seeing real cash flow until after year five but it's more effective than rentals in that there is little to no maintenance.Sure you can live in a home while fixing it up with the intention of selling it for a nice profit later but I think many people are already doing that and the buyers of slow flips now also have that opportunity without having to qualify with a bank.

I’m also making the property my primary residence to lower upfront costs, effectively turning it into a house hack.With this setup of me now occupying a room and not including utilities. 

While effective, reverse 1031 exchanges require thorough planning and are best suited for strategic investments.This post does not create a CPA-Client relationship.

@Phillip Austin I self-manage my properties including some where I do rent by room as a primary strategy, and it is very effective if done well with good screening in place.The difference is starting with shorter leases for me. 

Also, your total returns go down without any leverage because you lose the multiplier effect of appreciation.Now, to answer your question.

Alternatively, umbrella insurance may offer cost-effective protection.

But if your looking to cash flow like $500 or more per month you might want to look into more cost effective markets where you can purchase a property very cheap and the rents will give you that type of cash flow your looking for.

Most come out ahead over an extended period of time by buying better quality assets where they perhaps have to leave some capital in the property but find themselves able to sell for real gains or refinance out appreciated equity and scale more effectively that way.