You might be referring to income / expenses that are reflected by cash.Cash you receive from rentsExpenses that you pay out such as insurance, interest, taxes, etc.You may not have included depreciation expense which would bring your taxable income down further.It may be possible that the negative taxable income would bring your taxable income down.

I don't mean to be negative, but would like to be realistic.

Any insights from your experience, whether positive or negative, would be greatly appreciated.The attached link explains the current situation with the Detroit Housing Commission (DHC), highlighting that they are severely understaffed and have limited communication with both tenants and landlords.

Everyone thinks they can become a millionaire fast, and skip all the discipline aspects of it.   

I am just researching, and the more "negative" stuff I found about it the more I am inclined not to make an offer on it.

I’m likely staring at negative cash flow net of that high rate, or at best breakeven.

That's actually a great aspect of real estate, if things don't go as planned, wait it out!

What are the negatives?

It can't be too strong cash flow if replacing some appliances put you into negative cash flow (I assume you meant deficit, and truly didn't mean defecate).

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.