So, no tax advice here simply observation. 

I found that time and observing helped me feel comfortable with the process and that I wasn't "missing something".  

A couple observations about that sales venue:(1) Most of the houses I have observed there have seller‘s reserves.

Features include:Sale by Owner of Record: Only the owner of record may sell a home to an individual who will obtain FHA mortgage insurance for the loan; it may not involve any sale or assignment of the sales contract, a procedure often observed when the homebuyer is determined to have been a victim of predatory practices.Time Restrictions on Re-sales:Re-sales occurring 90 days or less following acquisition will not be eligible for a mortgage to be insured by FHA.

I would drive by the property several times, park in front of it to make observations, if possible and if I'm allowed I would walk the premises, and if time allows I would also engage in conversation with neighbors of the area.

From what I'm observing, it's like the elephant that's NOT in the room, even though I'm POSITIVE every investor is privately obsessing over the rates as they put together their pro formas. 

For the rest, I would speak to 3-5 property managers in the area and gather their thoughts/observations on vacancy rates, % of gross rent that goes towards maintenance/repairs, and capital improvements. 

I guess I am 3, but I feel like 1 in heart…I have observed versions of 2 for years - in particular I remember early / mid 2020 there was SO MUCH expectation of a crash and then the rest of that year, all of 2021, and Q1 2023 were HOT.  

The important thing is to maintain your entity as best you can, observing as many policies, practices, and formalities as possible.

While, as us physicists are prone to say, it should intuitively obvious to the most casual observer that you paid something for the house and something to fix it up, I guess to some folks it might not be.