The key is to ensure that you have calculated some vacancy loss.

ROI is your total profit (or loss) that includes CoC and capital gain (or loss).

I do not ever intend to sell the rental and just pass it onto my kids so I'd rather not have this carry over.I could buy into a good real estate syndicate and the K1 gain can become tax free because I can use the passive losses to offset the gain.However, are there other more liquid investments which can spit out gains that I can make tax free.

Just some food for thought.

That single step could have saved you thousands in losses.

I have seen mismanaged properties result in tens upon tens of thousands in loss over and over and over again so much that it's all but the standard.

I live around there.Spruce Pine has all your average stuff available - Ingles grocery store, a bunch of fast food and small independent restaurants, a Walmart. 

As a rental property owner, I am currently more concerned about rental rates and employment opportunities for my tenants than values as I can stomach some "paper loss" of equity given I don't intend to sell anytime soon.

In addition with many business's slowing down production, new jobs at a loss and unemployment claims at an all time high I believe the worst and best is yet to come. 

Unless you have very Deep Pockets or significant other income to cover the monthly loss and can ride it out for years to capture that appreciation.