I do like the auditing aspects, though—isn’t that something EAs are knowledgeable about too?

Just remember: most negative reviews are written by problematic tenants.

If the landlord was aware of his past, yet rented to him anyway - any lawyer worth their salt would make a nexus between those two pieces of information and create a liability claim.In addition to the extreme negative press you would get, it also takes time, money and energy to defend a lawsuit you will eventually win.

There are a lot of opportunities to keep it full while negating the full time management/customer service aspect.

Agreed, and in many cases, insurance is destroying cash flow if not pushing it into negative territory. 

Granted it is unlikely to result in a home run, but it also is less likely to fail big and negatively affect prospects for years. 

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

If I take out $200k, that property  will have a negative cash flow of $500, but the overall portfolio will still cash flow positive and I’ll have capital for another purchase.

.* compensating for their small manhood (women carry too)* Afraid/scared* a “little man” (again, women carry too)* have a superiority complex* some other negative thingThe same things are said about people who drive big trucks.

The negative equity position is one reason (there are many reasons) why adding an ADU is one of the worse RE investments.