For example, you can buy a $50,000 house that will rent for $1,000 a month, but it will also experience significant tenant problems, expensive turnovers, long vacancies, and other costly problems.

You aren't supposed to cut directly on it and I don't know if people refrain. 

Then when I go to sell, I can either convert it back to a single-family home at low cost, or leave it as two units depending on what the market is demanding.

The home needed targeted renovations that aligned with our strategy of maximizing returns through smart, cost-effective upgrades.

These things can add up and take a toll.Finally, cost of living may not be as good as you imagine.

We estimate that the basement will cost approximately $30,000.

Cost of living is low and entry point for rentals and flips is great. 

As much as anything like @Chris Seveney points out frequently the annual reporting can be complex and costly and its mandatory otherwise your running some serious SEC risks.. 

I think the challenge is that local meetups tend to be held in restaurants that cost money and they don't attend.

All this has been built into the loan along with operational cost to get the place running.