The 2% rule is where the rent is two percent of the purchase price, but when looking at apartment buildings, as Chi said, expenses tend to outweigh and have a major role in analysis. 

Getting collateral would be difficult.At first thought it seemed like there might be ways to incorporate it into a property management company, but I think the compliance and potential liability would outweigh any benefits.

If property #2 is in a better location, has more parking or other factors, that could easily outweigh the extra bedroom and bathroom in property #1.

At some point, the write off no longer out-weighs the opportunity to sell and they unload the property.  

Often times the tax implications out weigh the asset protection implications.

Expertise will outweigh geography when it comes to selecting a firm to work with.  

I have been done a lot of research here on the site, and the good of being licensed seem to out weigh the bad, and like you mentioned, it could add that extra stream of income from the leads I have that I can't convert for wholesale profit. 

While there can be some difficulty dealing with associations, I feel the advantages far outweigh the disadvantages as long as you do proper due diligence before buying.

I see no situation where the positives outweigh the negatives. 

I always consider a 2-year lease over a 1 year if the reward outweighs the risk.