However, over the past five years or so, increased national attention has led to a surge in supply, thereby putting pressure on occupancy rates, which might hover around 50% annually.

Maybe they're tired of investing in real estate and would rather put their money elsewhere. 30 years of tax deferral lets you hold onto the government's money for 30 years.

In Washington state right off the I 5 corridor .. my land partner got into contract for 65k ( infill lot that could handle a duplex or two units) put it on the MLS ( which is how you get top dollar) sold in 3 days multiple offers for 110k netted us 100k so 35k net profit .. which I have a formula to split with the acquisition partner. ( PS its always more to them than me) but bottom line if you can fill your pipeline its easily a low 6 figure to mid to high 6 figure when you have a capital partner like myself.. or someone else.. does take a fair amount of capital though usually 500k to 1 mil in cash to make that kind of money so thats where we come in.

It’s too much to put in a simple post on here but if you want to learn and get good at it, you can take some appraisal classes.

I typically buy a house for 40k put 20k into its and appraises for 110k and rents for $1,100 per month.

Cash flow is becoming less and less available especially if you’re a house hacked because you’re likely only putting a small amount down.

You could do that, but some Realtors don't like dual representation, it can put them in a bad spot, so in those instances, you might have you own agent. 

A friend was an investor who put me onto the idea.

If you put good processes in place and follow them to the letter, you are going to avoid 97% of all problems.

Is it truly a great deal or are they putting one over on you?