Yes, you're missing the underlying appreciation of the house, the value of storing money in a physical asset versus an alternative and capex costs.

I virtually always look at the property physically before making an offer. 

we are physically overseas more than 330 days so we can use the FEIE. 

I agree with you I would have the actual physical occupants do a background check.6.

In this scenario, I physically couldn't accept Section 8 because the house didn't have a legal rental permit.

Most times, the due diligence period is used for you to bring out your inspector to physically test the property (environmental, structural, roof, etc.) 

Most markets the physical vacancy is 5-10%, good chance you can find it by googling and seeing what the average is.

Personally, I've seen tenants granted a continued occupancy/renewal of their lease for the following:(1) threatening other tenants/neighbors with physical harm(2) dealing drugs out of the apartment with children residing in the same building(3) discharging a firearm on the premises(4) refusing entry to the landlord/his agent for necessary repairsAnd I am sure there are many other examples of bad behavior that the property owner is powerless to react to.

Just curious, I’m a big magazine fan (physical copies).

This setup allows me to maintain my current income while being physically present in Missouri to actively manage our real estate investments.My BRRRR Strategy:My goal is to identify single-family homes or small multi-family units that need some rehab work, ideally in neighborhoods with strong rental demand and growth potential.