This means expect tax increases, expect HOI increases, expect tenant issues, PM issues, capex issues, everything in between.

This is an older home that could potentially still have maintenance issues.

In other words, millions of dollars in the hope that you can get your policies approved in the states you want them issued.

I’ve also managed units where on our renewal rate we did reduce the rent from the prior year, but for other reasons, such as the prior year of the tenant having a washer and dryer, and a major plumbing issue with the building, preventing us from offering it the following year so we did a reduction.

I would rather have 4 Class A properties than 20 Class C properties (20 roofs to replace, HVAC, more tenant issues, property management fees, AC unit stolen, etc).Wealth from real estate is built on appreciation and equity - look at all the multi-millionaires in coastal California whose property values have gone up dramatically over the years and our property taxes increase 2% a year from the base value (Proposition 13) compared to other states whose taxes go up a lot.

Motivation, trust, capital gains issues, they like payments without work (passive income), 10's of thousands in interest, passing on their investments to children in the form of monthly payments, they admire the hustle, they want to see their property in good hands.

Most are fine with that, but a few will have problems with it and claim there are legal issues, etc..

Debt reduction also has many philosophies and it's okay to choose emotion over the academic arbitrage, it's your life and your choice.  

I'm in the process of splitting the utilities in my first house but having issues getting electrical Parts but should be coming soon .should I wait for the utilities to be split in my first house before I buy my second property?

A bit more expensive and financing may be an issue.