Any more than this, and I feel that I am paying for their luxury lifestyle before getting returns delivered. 

I planned for it financially, but it's a headache for sure. your rent is too high if they are sitting vacant.. there is more inventory than butts to put in them.. therefore competition for the few qualified tenants this will cause rents to go DOWN.. if a property is not rented in 2 to 4 weeks your rent is too high .. this is one of the major risk factors that many dont see when buying in a subdivision of group of ALL new rentals..

I agree that these are more important factors.

There are two types of appreciation to consider:1.Market Appreciation: Rising property values driven by external factors like economic growth, demand, or market conditions.

There are a lot of factors that go into this and a lot of levers to pull.If none of this works and the goal of the new purchase is to househack that property into an investment property, you may be able to use a DSCR loan to buy the new property as an outright investment property.

I’ve been reading extensively on strategies to minimize tenant vacancies through smart investments, and I’ve come to realize that many other factors play a crucial role when managing rental properties.

With such low rental yields, the return on investment (ROI) and cash-on-cash (CoC) return are negative when factoring in mortgage payments only, not including any other factors.In this market, it seems almost impossible to make a profit using traditional rental property investing strategies.

Will depend on several factors like the type of property, type of tenants, your risk tolerance, other assets you own, your estate planning, laws where the property is located, etc.

There are some other dynamics that also will likely play a factor in making the situation great for investors...such as runup in home prices and interest rates probably created a permanent renter class of society. 

Some investors make it work by targeting less saturated areas nearby, but a lot of folks find more affordable markets out of state, which can make this strategy more feasible.Capital needs can vary quite a bit depending on factors like partnering, financing options, and property types.