I agree with the post above. 

I agree with this.

Great thoughts and agree on all points! 

I agree with the FHA loan for 3.5%.

@Gina HuertaIf you want to avoid paying as much tax as possible then I would agree with @Luke Stewart and recommend a 1031.

@Christie GahanI think that is a very extreme example and probably could occur but we have over 5M mf buildings in this country and it is not going to be a widespread issue of default / rent control battles.

Agreed,Lot's of deals to be found in Ohio.Tougher nowadays but still enough to stay busy.Just to answer the OP's initial question also.Loosing on a deal in the first few years is risky business.When I first started investing in 2010 and back home in Australia, I built a large portfolio and fairly quickly.Lot's of debt...Monthly mortgages where costing me more than I was generating in income.It was a slow bleed so I decided to liquidate and move to cashflow friendly markets in the US (Specifically Ohio).In hindsight, those same properties if owned today would have made me millions in capital gain profits.So if you are looking for an appreciation play, make sure to have enough income from your W2 or other means to withstand the slow monthly bleed until the properties appreciate so much that you end up being in the green even tho you bled monthly.Again, very risky business IMO.Much success

Agreed.

I'm going to have to agree with @Clinton Buchanan. 

. $7000 can get you a lot of a house in most parts of the country so maybe they do think that they deserve more.