Then she still only makes 2% extra for taking the risk of you not paying versus a bank.

That will increase your material costs for the job and is the contractor paying for the material in their bid or are you paying for it and paying them a labor cost.

Now, this would obviously be negatively cash flowing since you would need to pay taxes and insurance.

It may sound nice to pay a 6% management fee but the extra fees can add up to be more than the other company that charges 10% with no additional fees.

Cash flow is defined as the money left over after paying for all expenses, including setting aside a certain amount to cover projected expenses like maintenance, vacancies, or capital expenditures.EXAMPLE:Property Price: $250,000Down Payment (25%): $62,500Loan Amount: $187,500Interest Rate: 6.5%Loan Term: 30 yearsMonthly Mortgage Payment: $1,185Monthly ExpensesMortgage Payment: $1,185Property Taxes: $250Insurance: $100Maintenance (10% of rent): $250Vacancy and CapEx (20% of rent): $500Rental IncomeMonthly Rent: $2,500Total Expenses: $2,285Cash FlowNet Cash Flow: $215 per month 💰However, there are many other factors to consider.

I use all the rental cash flow to pay these loans off asap, then repeat.

On the other hand, when you design strategically for a specific type of guest, they’ll not only pay your desired rate but also return and recommend your property.I go deeper into this on BiggerPockets Episode 933, but I completely understand if not everyone finds this info relevant.

From what I've seen in this area right now, it seems like you'd have a hard time paying market LTR rents and making a good spread. 

I was studying the market and my rent will be just enough to cover the mortgage and HOA fee now I might to pay out of pocket for insurance but don't want to sell it yet because the area is growing and might have good appreciation in the years that follow.

Also, if you are a minority, WRA has the Partnership for Success program, which helps pay for your start up costs.