Before the income subject to UBIT is calculated you can depreciate and deduct expenses and losses on that portion of the income so generally it's not as bad as people think. 

I was talking to a RE friend.He said it's a bad time to buy* rates are high* homes are expensive in most marketsLooking to hear some counterpoints. 

Hi Vincent, there is a significant difference in true Hard Money and rehab loans, rehab loans won’t be low doc by any means.Hard money should be fairly simple & quick to fund, it’s strictly equity based.How bad is the condition of the property?

Talking about poor children and the such is just designed to make me feel bad.

Quote from @Isla Arshad: You know in your heart she's a bad tenant.

It’s never as simple as it first appears, which is why we always advise our clients to let the math guide the choice.

Is it a bad idea to invest in properties where you would be able to collect rent that is equal or a little less than your mortgage payment?

It's always a personal choice everyone has a different perspective.   

If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general.

Mostly people with minimal RE experience are adding a single ADU and they often make that choice based on cash flow without taking into account the negative equity position.