And by the way, if a tenant gets sick or suffers injury due to a property condition mold, toxic issues etc or worse,they can still drag you to court.

@Dave ToelkesI like these discussions as they give everyone cause to think and reflect.Cash-on-Cash (NOI /{ Initial cash or capital investment}) suffers from the same single-point-in-time limitations that the CAP rate and CRM ratios do.  

We have for years earned our living from real estate but with the market change have suffered financially this past year.

It her and the landlord problem that she has those cold floors and only one bedroom with a vent not ours but we have to suffer all the same.

Your regular insurance would cover "wind driven water" where your property suffers wind damage and then water gets in.

Commercial residential has suffered large property value declines (as has office space) in the last 2 years.There are safe passive investments that can provide reliable returns.Good luck

I think dumping rents would be a fools folly and ensure that all the STR LL would suffer more as it would not increase the overall occupancy.  

Broken down vehicles, shady visitors, animals appearing, notices from city code enforcement, smoking. partying, domestic disturbances, on and on.Without appreciation, I would have netted nothing really for my 10 yrs of pain and suffering. 

Your percentage gain would apply to $200k or $800k or $1 to $5 million....And admittedly, if real estate dropped by much.....you'd suffer that percentage on small, medium or large portfolio.So.....risk versus reward of using debt/leverage.

If you can suffer through a few month's (or less) of reduced cash flow you can raise the rent or start with a new tenant.