And, yes, there are years of data points to validate that just within my office, tens of thousands of dollars of wasted appraisal and inspection fees for deals (mostly not mine, thankfully) that had 0.00% of going anywhere but the "Loan Application Declined" bin. 

You buy it and now go to look at your beachfront and see a dumpsite of shingles or tires, that will cost you more than the lot is worth to clear out and maybe have the EPA just waiting for someone like you to jump on with fines for the cleanup. 

Even after one year, that property may provide thousands of dollars worth of appreciation, you will pay down your loan and build some equity, and you can depreciate the asset. 

(They claimed thousands for electrical using what appeared to be a fake electrical company, and they never had someone out to even check electrical beyond the general.) 

Quote from @Pankaj Malik: I’m just really surprised that the tenant is not taking the option to break the lease break with a $ number offered (1 month rent plus reasonable amount for parts of house he wasn’t able to use) that is within a couple thousand dollars of what he wanted anyway. 

The SEC claims Fossum misappropriated hundreds of thousands of dollars from the funds by living rent-free in a fund-owned home and having the funds pay for extensive international travel and his federal taxes.

Quote from @Dominick Johnson: Why wait 27.5 years to claim all depreciation, do an accelerated depreciation and get those tax deductions now!

I manage hundreds of rentals and have had thousands of tenants, but I've never been sued once.

We net 10s of thousands of people from the Midwest states as well. 

Sounds like with are under charging our owners by thousands of dollars or they are trying to rip you off.