They can all work at different times, imo.Good luck finding your own method.Rich Awesome insight Rich,This is the same track I've been researching, thanks for the post to reiterate that there are others other there  on this same path:- the balance between cash flow, tax shield from depreciation, and projections to figure out how to net "0," on paper or as close to it as possible- building up the passive activity loss bucket in anticipation of properties or other income producing activities that have income that exceed expenses and depreciation so I can keep the net "0," balance for tax shield purposes- use of entities, revocable and non revocable trusts, and Life insurance to exit life with no estate tax, fund trusts with perpetual income and asset growth by auto/default design to perpetuate indefinitely into future generations

This is a small home in an older neighborhood in the incredibly hot Denver metro area market.

I know I've heard from VR owners in southern California coastal areas, and areas of Hawaii that pull in incredible cash flow from their properties. 

I hate it but it's like bandit signs it can produce leads if done right.  

I'm able to produce positive cash flow as since I live here and able to manage myself.

The team  is incredible and they bust there back ends off to provide the best source of REI knowledge out there ( in my opinion ).

If you have a property that is positive cashflow - then you can sit out any market downturn and simply collect rent checks while everybody else is freaking out - and you may even be in a great position to purchase even more cashflowing properties at their new deep discount prices - hang in there and keep your eye on the market and continue looking for properties that can produce income.  

That is an incredible deal to letter ratio.  

The monthly budget amounts are more than what we pay for propane, so it's actually a money maker for us.I would just tell your tenants that there will be a monthly "budget" amount for oil each month and produce a monthly statement for them. 

If you don't have a mortgage professional right now, I would recommend reaching out to a few investors your know and getting them to give you a referral for their favorite (read: one who produces quantifiable results) "money" man or woman.