How about the increased home insurance cost for a landlord policy?

So, after one year you netted $35,000 for your efforts while the property owner netted $40,000 in rent plus $150,000 increase in value.  

Quote from @Greg Kasmer: I'm curious as to your comment on getting back in when the bottom has been "somewhat defined" - Is that defined by rents stabilizing and/or increasing or another metric?

Can not go wrong with a rental in Ashburn since the rents have increased so much. 

For more expensive properties, the flat fee means the credit/refund increases exponentially, like $19,000 on a $1 million property.4.

When the ROE is significantly smaller than my CoC return (based on initial investment) I know it's time to make a move to increase the velocity of the money.

While I’m open to both turn-key and fixer-upper properties, my preference leans slightly toward value-add opportunities where I can improve the property and increase equity or cash flow.That said, I’m also happy to consider turn-key options that provide immediate cash flow if they fit within my investment strategy.

Like most markets, there is a growing trend in the area due to affordability and increasing more things to do. 

This is usually done to increase your rental income but it comes with a price as you are finding out.  

Furthermore you can vastly increase your returns through leverage using a non-recourse loan but that will definitely trigger UBIT but again the numbers can still make a lot of sense.