There are certainly some complexities such as exposure to taxable UDFI (unrelated debt-financed income) on the leveraged returns. 

However, as you can see from the calculator, a 6% cash on cash ROI for that much money invested is not exactly stellar returns. 

Best part is they don't require W2s or tax returns... which for full time real estate investors is a huge plus.

Without even asking for something in return, they may take care of you.

But when applying for a new loan, I have to provide tax returns and everything is reflected there on Sch E.I think you would have to call around to lenders and see what impact, if any, it would be for getting a personal home mortgage loan.

In a lot of Europe, however, buying property that you don't live in is really just a place for very wealthy people to park money because you don't make the kind of returns that you can make in the US.

I don't think for 3% you would get a return phone call from the PM company

The current tenant historically fell behind on their rent, and would catch up every year with their tax returns.

If you think about it, the PM is required to do the move out inspection, record damages, and return the security deposit within 30 days (your state may require something different).

@Cody James Cressey, the question from this side of the pond is "on what tax return is that property being reported on"?