So I would attribute your situation to one where you ended up getting an incompetent person, just like in any industry.

There will be 1 or 2 that stand out above the rest, and 1 or 2 that are atrocious, but you would likely be unable to tell the difference honestly.

Perhaps then an area will stand out that tends to get better returns than others.

Though I think William may have been referring to entities to attribute some earned income to the activities of property management when he discussed S-Corp vs LLC.

Since I have had great tenants who pay on time and care far better for the property (I attribute this to vetting my applicants till I found quality renters). 

Don't forget to include start up costs such as linens, decorations, and the little things that will make your rental stand out from the crowd when figuring out your cash flow for your first year.

While you can do certain things to try to make your unit stand out, overall your income is going to be capped by the availability of alternatives right in your building.Another point, HOA costs and assessment for repairs can seriously eat into your bottom line.

You might be able to reduce the amount of recapture through capital investment (but these would be lease-hold improvements and may not be attributable to the Vendor/Lessor's tax situation).Up here (Canada), you would be all but guaranteed the CRA would flag it as an instalment sale.

There are a few physical attributes to look for in regards to utilities that have to be considered, however.

Many of us can print money today with great design because it delights guests and makes our listings stand out from all of the average ones nearby.