Point is cash flow (positive or negative) is inconsequential compared to the appreciation assuming you do not need the cash flow to pay the bills.  

Thanks Dennis, I think you're right that planning for a more conservative return would be a good idea.I re-ran my numbers at an even more conservative level:Lower ARV: $800,000Lower income levels (I'm assuming it will take a couple years to get up to full potential income, but giving myself 3 years was a conservative estimate):Year 1: 50k (NOI $1,000)Year 2: 80k (NOI $31,000)Year 3: 100k (NOI $51,000)My ROI numbers come out to:1% (year 1) 46% (year 2) 76% (year 3)This scenario seems like an acceptable risk to me, when the upside seems far more profitable.

If the former, give her options to make sure rent is paid on time and, assuming she starts to pay on time, when it comes time to renew the lease, do not renew it.

Sure, you could be fully occupied today, but if you’ve got a week of downtime between tenants, your yearly occupancy for that unit is actually 98%, not 100%.That being said, I know there is a sweet spot for LTR and STR and I assume there's a sweet spot for MTR.

I will assume positive intent here that this is not the experience you intend for your customers.

I assume you currently have a residential mortgage that does not have a pre-payment penalty.

Assuming you already paid for the first occurrence, if it happens again and the plumber doesn't find anything wrong then, yes, the tenant should be responsible for the invoice.Your PM should be setting those expectations when they communicate with your tenant."

That’s assuming you don’t lose money to vacancy, capex, etc etc.

I have also done the math and my account over the next 20 years will grow larger assuming a flat 7% return by taking loans then not. 

If you want to buy another rental, then saving your money for that (assuming you have room to borrow more money) is probably the better idea.