They are being "sold" on real estate providing so much tax benefit that it includes deduction against their regular income...

Do they include property tax and estimated income tax from the projected profit?

For now it's business as usual.Major cities, including Phoenix, Scottsdale, Mesa, Sedona and others, have adopted their own STR rules and regulations, primarily requiring operators to register their rentals.

The funny thing is most of the above, myself included, never bothered to do spreadsheets or IRR analysis.

Cost on a 10K sqft shell(not including land) should be around $75 sqft.

A red flag is a warning for you to dig deeper.I recommend your offer to purchase include a requirement that the Seller provide all documentation and agree to sign an estoppel certificate (also called an estoppel form or agreement).

Particularly be sure to include your goals for real estate investing so that folks can help you. 2) Follow your favorite forum topics and set up keyword alerts!

If not, you will have to include an explanation as well. 

I always include facts proof and data, but it always lands on deaf ears. 

Wise investors are putting systems in place (including property managers and other service providers) so that these risks are mitigated without investor being involved.