It would take too many buys to average out this loss.

Most of the time the homeowner is simply down on their luck from a job loss, divorce or medical issues and can't afford to pay the mortgage.

Most of this information will be disclosed to you if you ask for a Trailing 12 and the the past few years of profit/loss.

If you have no money, who takes the loss if the property doesn’t perform as expected or if you end up hiring dishonest people who take your money and then take off?

If the tenants are bad, they may end up costing you much more than you made with the immediately income.Preference is to buy vacant so you can get the unit in shape, select your own tenants, and then get market rates for the property with (hopefully) fewer losses in the future.

Confusion or fear of loss is being created due to lack of answers for yourself. 

At the end of the year my cpa has access to my quickbooks and just prints a profit loss statement.

It also comes with $320k loss of income protection for one yr.

Not sure if I should cut my losses and hire another team to either manage or flip this unit, and hire a lawyer to audit the property management team. 

Again, if the idea is to break the "rat race" why point out one investment as potentially risky (jewelry) while ignoring a guaranteed financial loss inherent to purchasing any new vehicle?