Suppose one purchased a 4 plex for $400k and took the standard depreciation for 27.5 years deducting $300k for tax purposes.

I rent it for $1750 and mortgage/insurance/taxes/association are $1100.

A 2 BR or 3 BR townhouse condo in the same complex easily costs 3x - 5x as much to rehab if it has been neglected since the 1960s, while only drawing 1.5 - 1.8 the rent.The purchase price for the latest unit is $18,000, and closing costs including reimbursement of pre-paid property taxes will bring the total to $18,700.  

Add in inflation, tax benefits to include depreciation, the slow increasing of rents over time, and the ability to use leverage at purchase--well, there are a variety of benefits to investing in property.

So wouldn't that make your cash flow for the first 2 properties the sum of the rent minus HOA, taxes, and %for cap expenses and vacancies?

I chose orange county because I am somewhat familiar with the area as I travel there quite often, the taxes are lower than nearby Rockland and Westchester counties, and the percentage of home sales have risen more than the respective counties over the past year. 

I pay the property taxes, and tenants take care of maintenance, insurance for their trailers, and all the utility bills. 

We only moved the toilet about three feet to the shower, so it's not like it's long distance heavy lifting to put it back, if they want.108 year old house, FHA and HUD and income taxes didn't even exist when it was built.There was also some other little stuff that was a few hours in an afternoon of work for the buyers.

For instance, I didn’t get the actual property tax amount.

Loan Info: Owner is carrying note for $285,000 and I'm putting 50K down. 15 year loan @ 4.35% -- W/Tax, ins, ect -- my payment is @ $2150/MO.The 2 BD/1BR's rent for $600 for upper and $500 for lower (although they are the exact same layouts).