.  :-)But if you aren't careful and you are overly leveraged (especially if you are using cash out refi's every couple years to use as the down payment on another property), it is easy to see that net worth destroyed by the sometimes wildly fluctuating local real estate market.  

Then destroy it!

A bad property manager can destroy a good investment, while a good PM can save a mediocre investment.

But the reality may be that the tenant hasn't paid in two months, or pays 20 days late every month, or their dog is destroying the carpet, etc.There are literally hundreds of threads explaining the dangers of buying a property with existing renters.

They look good on paper, but the realities of low-quality renters, high crime, unscrupulous vendors, and other problems can destroy the investment value.Some landlord insurance policies have burglary as an additional rider you must add on specifically.

I can't say I am worried he is going to destroy the property as he does not seem angry with the situation however I am curious what those with more experience my offer in advice. 

Takes a long time to build that up even if you can get 20-25% returns.Depending on interest rates (6%) should be able to get close to 20% on turnkey properties provided you keep refinancing to keep leverage in the 4-5x range (destroying your cash flow in the process) Higher returns require value add or getting lucky on appreciation/deal/interest rates.A great brrr should return approximately 100% the first year and then back to the 20% afterwards.

Eventually there's going to be a site that's good for owners, probably a flat fee model, free for users and the savings will destroy VRBO and Airbnb.

When running your numbers, assume that the property is destroyed inside to the point of full gut + some. 

I'm looking through the spreadsheet and I think it's worth mentioning that it's possible to spend a lot less for certain material items as well as labor in many cases depending on how frugal you want to beinterior door with hardware: $5-10 used, $30-50 newwindow: $10-50 used, $100-200 newlight fixtures: $1-10 used, 6 pack flushmount at lowes for $44fan fixture: $24-60 new water heater: $250 newtoilet: $50-90 newsink: $40-200 new faucet: $10-30 newtile: 0.49-2/sqft newappliance: $20-200 each appliance usedmy last rehab was:60 elec permit cost + 300 elec repair (tenant destroyed meter box causing house to be condemned)1600 material + 1500 labor flooring for 1400 sqft500 material + 600 labor spray paint whole house semigloss and patch some large holes$30 for 4 interior doors which I put in$10 mirror for bathroom$100 paint porch, stairs, and stair rail brown$50 fridge, $10 burner plates for stoveI also spent at least a few hundred with help on cleaning and taking out the trash and some other expenses here and there which altogether added up to about 5 thousand.I spent maybe 30 hours over there in total on the weekends.