And since I buy in quality neighborhoods with a long history of strong demand, limited supply, and therefore rent increases, my cash flow per unit tends to go something like $100/mo first year, $200/mo second year, $320/mo third year, $450/mo forth year ... as opposed to being cheap and buying in less desirable neighborhoods where the cash flow goes $300/mo first year, $300/mo second year, $300/mo third year ... you are actually losing purchasing power in this case after factoring inflation.

One that is well known and has a large supply of employees, vehicles and assets.

Keep in mind the additional costs typically associated with short-term rentals - cleaning fees, supplies, furnishings, utilities, any short-term license fees in your local market, etc. 

Hi Everyone, I had 2 tenant (boyfriend & girlfriend) in my duplex.They had/have a couple violations (noise/fighting, smoking) they have cause damage to the unit.One of them (the boyfriend) decided to break the lease and move out in May. 

Here are the numbers:Current value: $195,000Mortgage balance: $150,000P&I, taxes, insurance, HOA: $1,050/monthRental income: $1,600/month + 2% annual increaseAverage maintenance spending over 8 years: $100/monthLocal appreciation rate: 1.5%, very stableThe location is near a large university and hospital so there is a plentiful supply of responsible tenants (graduate students, residents, etc.).  

Holy smokes!

There was a three-month supply of homes in the area.

Yes I was able to screen so that the tenant does not smoke (not even weed, has no evictions, no felonies, and no pets.)

Are you getting a smoking hot deal or is it mediocre now that you know whats next door?

This contractor has all the supplies and does like three different model houses.