While there are returns and security in substantial positive cashflow, you also get returns through appreciation, tax deductions, and loan paydown.

I am not sure how old your mother is, but if she has substantial equity like you are saying, she can pull it out, pay off the original loan, and even eliminate her payment. 

(Business income or loss) Not if substantial services were not provided 

You hardly build any equity in your first year, it makes sense to refi only if the rate is substantially lower or if you can get rid of mortgage insurance.

With a purchase price of $205,000 and a sale price of $349,000, the property promised substantial returns.

These are some of the ways the clients could be affected by property managers who are not prepared: Extended VacanciesInadequate marketing strategies and tenant screening processes can result in prolonged vacancy periods, translating into substantial lost rental income.High tenant turnover due to poor resident relations further exacerbates vacancy losses.Inadequate Maintenance and RepairsNeglecting preventive maintenance and delaying necessary repairs can lead to accelerated property deterioration and higher long-term repair costs.This can also negatively impact tenant satisfaction, contributing to higher turnover rates.Legal and Compliance IssuesLack of knowledge or disregard for landlord-tenant laws and regulations can expose investors to costly legal disputes and penalties.Failure to properly handle security deposits, evictions, or fair housing practices can result in significant financial liabilities.Ineffective Financial ManagementInaccurate budgeting, expense tracking, and financial reporting can lead to uninformed decision-making and missed opportunities for cost savings.Failure to optimize tax strategies and leverage available deductions can further reduce net returns.Diminished Property ValueInadequate maintenance, high vacancy rates, and poor tenant screening can negatively impact a property’s perceived value and appreciation potential.This can significantly affect the long-term return on investment when it comes time to sell the asset.While a 10% management fee may seem reasonable for a well-performing property manager, the cumulative impact of mismanagement can quickly escalate the effective cost to investors, potentially outweighing any perceived savings on the management fee itself.

With a purchase price of $200,000 and a sale price of $220,000, the property promised substantial returns with minimal risk.

I think we can all reasonably assume that property values in 5, 10, 20 years will be substantially higher than they are now.

With a purchase price of $165,000 and a sale price of $294,000, the property promised substantial returns.

With a purchase price of $275,000 and a sale price of $501,130, the property promised substantial returns.