I have learned some of these lessons the VERY hard way.But debt can also be a useful tool.Think about how difficult it would be to get out of the renting cycle and own your home if it weren't for debt (mortgage).Many smart businesses use debt tactically and strategically to stay nimble and flexible with their resources.My point here is not to cast a vote for or against debt - it's too nuanced a subject for that type of judgement.

Given the current state of the business cycle with rates elevated, potential economic turmoil ahead, and a whole lot of uncertainty for the economy as a whole, Its easy to second guess entering the market right now.

Happy tenants usually renew for 3 to 4 lease cycles if they received a good product and prompt maintenance response when needed. 

Rental licenses in Duluth are good for 3 years before needing to renew, so where a property is in the cycle is something consider for initial costs.

Typically I would visit twice per month, run hot and cold water in all fixtures; flush all toilets; operate on a short cycle, the dishwasher and washing machine; check all rooms for anything out of place or signs of leaks or other issues (many were condos, affected by issues in other units); if they had a car, I would take the car out for a 15 minute drive and handle registration renewals and safety checks when due; some properties we needed to coordinate pre and post cleaning when Client was going to visit.

With the high probability of holding two mortgages, one of which will be on a home that sits vacant in a buyer's market, we are wondering which avenue to take: hold out for the market to cycle back in the seller's (our) favor and regain our investment capital, or list the house for rent and make the slow, laborious climb to our target savings using small return in cash flow (assuming we ARE able to cash flow).In summary:Originally purchased at: $184,900, $74/sqft (Principal Remaining $177,000)Invested: $20,000Currently Listed for Sale at: $249,000, $99/sqftBreak-even Renovation Price (including 6% realtor commission / Closing): ~$230,000, depending on closing cost arrangements.Days on Market: 61Net Rental Income to Positive Cash Flow $200.00 (including 10% property management, 10% for repairs): $1750.00, equates to Fair Market Rent for sqft, house specs, and location---------With our goals of purchasing our first investment property by September 2017, I am concerned by the opportunities lost in keeping all of our investment capital tied up in the NM home; I'm equally concerned that if we choose to leave it on the market, we will end up paying two mortgages until the market takes an upward turn, a duration of time of which I have no prediction.By my rough calculations, it will take ~19 more months before the additional mortgage payments we pay into the home overtake the profit (aside from capital) we would have made from a sale on Day 1.

So you do end up "paying" for maintenance.And please don't throw out the canard of the "problem-free" month where the PM does little work, you have to look at it through the cycle, all the hours spent on finding/placing tenants every year or two, serving 3-day notices, occasional eviction/setout, dealing with problems that crop up, arranging for repairs (God forbid getting multiple bids!!)

But if you are conservative and looking for sponsors that have the most experience (one or more full real estate cycles with no investor money lost) they are difficult to find on any of the crowdfunding platforms, because they have such loyal and enthusiastic investor bases that they have no need to be there.

There are going to be cycles, pricing is art form, dealing with guests, marketing, providing a guest experience.

Going to cash with stock/bond market investments can mean going to Section 506 investments, depending on what you invest in as some don't correlate with stock/bond markets or real estate.Two big down sides for Section 506 are (1) they are still very new since 2013 and haven't seen a full cycle yet - we don't know how bad it will be in a downturn; (2) Your funds are generally locked-in for the term of the investment, unlike stock/bond market investments that can usually be quickly sold.