Also, what would my next logical step be?

Unable to respond to rising demand in the logical way--raising price--landlords impose conditions on renters, or stop responding immediately to renters' complaints because, after all, with such low vacancy levels renters have nowhere to go.

As a result, the tenant was told not to use the exit for anything other than an emergency.The residence only two exits.There is no logical reason why the tenant HAS to use the porch for any reason other than an emergency.

If anyone spots a flaw in my logic, please feel free to chime in, but I'm pretty confident as I've been discussing with my CPA and various lawyers now for ~2 months!

It is comprehensive and covers everything in a logical order.

Logic says I'm going to pay 3000 in expenses, soon enough, if I keep negatively cash flow like I have now.

Then, putting out a few offers... so all in all a pretty slow buildup.BUT the big key for me was fully committing (with both logic and emotion) that I would do this no matter what.

I also like your logic about targeting the average Joe who's looking for his nice house, but around here, such a house starts around $300k - $400k, so I sort of figured I was already at the lower end of the scale (without being at the bottom).

I agree that is logical, but would the IRS see it that way?  

The source of our data is a division of First American Title called Core Logic or RealQuest (we have no affiliation with them whatsoever).They are the industry standard for real estate mailer data for all types of real estate, in my opinion.