In general, any time you have profit or depreciation recapture that would cause a tax. 

He sold that duplex last year, and cleared a 6 figure PROFIT. 

When you add rehab costs and effort, holding costs, and selling cost there is not much profit. 

Interest only loans allows them to get a goal profit of $500-$600 per month per property.3) Each acquisition would require 20-25% down at an 80-100K purchase price. 4) Closing costs, and the Eric Spofford turn-key transaction fee of 10K would be in addition to the down payment and were not included for the purposes of calculating the cash-on-cash return.

You may be profitable, but I'd prefer to avoid the possibility of having to do unnecessary repairs or not holding my tenants accountable for damage when I know their actions might have caused any unforeseen damage. 

Sell,  pay the taxes, and give them their $1,000 plus half the after tax profits?

Likely not allowed in the lease and if the landlord were to allow it they will partner with you and take a good chunk of the profits.

Following the shiny object, throwing money at a market you don't know well, and blindly trusting strangers that have a clear profit motive put you in a poor position to succeed regardless of where you choose to invest.

Long term financing ensures solid, residual net-profit income without being a landlord How did you find this deal and how did you negotiate it?

So from experience I can't say it has been beneficial or not to our profit.