It seems like that would eat into the returns and you can't get positive cash flow for a while5.

And even if the tenants chooses to stay in your property for 2yrs, the damage they may cause will eat away all of your cash flow and leave you potentially upside down.

As an investor myself, I'd say property taxes can eat into cash flow in certain areas and some neighborhoods are gentrifying fast which means you really need to know your submarkets.

But from a moral & ethical perspective, you may want to decide at some point to just eat it and accept write it off as cost of doing business.

@Jason Wray Thank you very much for this response ..I’ve never sold one of my rentals before feels like I’m cutting off a leg and paying close to 100k for cap gains is really starting to eat at me 😵‍💫Any chance you would be so kind as to send me a link to something in the ballpark of what you’re suggesting this way I can get an idea of area and what this type of property could look like!

A friend of mine, Ryan, who invests heavily in Baltimore, realized his interest costs were eating into his cash flow.

It costs $10 to register to attend the events, but your attendance comes with an all you can eat buffet at The Asian Star Buffet.

Over-budgeting is critical to ensure that renovations don’t eat into your profits.Market Fluctuations: If property values in your area do not appreciate as expected, or if you face a market downturn, the amount you can refinance for may be lower than anticipated.Financing Challenges: Securing financing for the initial purchase and rehab, as well as refinancing after the property is rehabbed, may be challenging, particularly if the property is located in an area with fluctuating values or if the rehab work doesn’t immediately improve the property’s appraised value.Tenant Risk: Rent collection and tenant management can be unpredictable.

I am wondering what it takes to deliver a higher customer experience, equivalent to receiving a warm wash towel at a restaurant table before you eat. 

So you just need to look at that additional $2000 - $3000 of interest each year as really being 1000 - $2000 of total new expense to your after the tax deduction.3.