It's becoming even more important for agents to deepen their expertise and offer that essential guidance and insight.For folks going at it without an agent, the challenges could ramp up.

We have "squatters rights" aka adverse possession laws but it's really difficult to meet the legal requirements for that: the squatter must live in the property as if it's their own for 18 years, paying property taxes, making improvements etc. and it must be open and hostile/ against the true owners wishes for the full 18 years continuously to be able to make that claim.

Also, there is unpaid property tax as well, will the property tax be written off or which party will be responsible for it?

Is there a software out there that you use or recommend to enter all of the expenses into that will help with totaling all the expenses accurately into proper categories for year end tax stuff or by each project?   

@Bob Stevens that will be 8-10% net after all monthly reserves for property taxes, insurance, any owner paid utilities, vacancy (5%), property management (10%), and maintenance (10%).

It's your opinion and IMO, the reader should take into consideration your professional background and expertise.

It may help if you give some details on the area, how much you are charging per room, utility costs, taxes, etc. 

If don't do a 1031 exchange and decide to pay capital gains, I would have about $450k free of taxes (this accounts depreciation and other costs).

So you’re going to have utilities, a year’s insurance, taxes, mortgage payments and then the rehab cost.

And in a 1031 exchange the tax payer has to stay the same.