@Chandler Williams ok, simply put your doing EVERYTHING wrong. 

Quote from @Steve Smith: Dan,Nothing wrong with giving dollars away.

@Zane K. what we see investors doing wrong:1) Not understanding Class A, B, C & D properties and HOW their ROIs are different.- Property Class will affect location, tenants, maintenance, vacancy, etc.2) Not doing enough of their own due diligence when buying a property. - Trusting agents & PMCs too much!

I bought a Zone A house at auction last year and everyone said I was wrong, or the value was not there.  

I highly suggest working with an investor friendly agent so you don't buy in the wrong locations.I like the west side of Cleveland.

Every time I hear about property warranties, it is when something major goes wrong, and the tenants are complaining (rightfully so).

It doesn't appear that there was anything wrong with the property.

So many things wrong with all this.First don't pay for this.

Nothing wrong with this approach but what you want is a measurable, predictable number of potential deals flowing your way so I wouldn't recommend relying solely on the passive deal search.You may have access to information to help you prospect for these deals on your own.

Aside from the misalignment of incentives, this little chart I created shows why I won't invest in deals with preferred returns.The only thing we know going into the deal is that the returns are projections and projections are always wrong.